7. Tertiary and Quaternary Activities

NCERT questions:

1. Choose the right answer from the four alternatives given below:

(i) Which one of the following is a tertiary activity?

a) Farming

b) Trading

c) Weaving

d) Hunting

Ans. b) Trading

(ii) Which one of the following activities is not a secondary sector activity?

a) Iron smelting

b) Catching fish

c) Making garments

d) Basket weaving

Ans. b) Catching fish

(iii) Which one of the following sectors provides most of the employment in Delhi, Mumbai, Chennai and Kolkata?

a) Primary

b) Secondary

c) Quaternary

d) Services

Ans. d) Services

(iv) Jobs that involve high degrees and level of innovations are known as:

a) Secondary activities

b) Quaternary activities

c) Quinary activities

d) Primary activities

Ans. c) Quinary activities

(v) Which one of the following activities is related to quaternary sector?

a) Manufacturing computers

b) Paper and raw pulp production

c) University teaching

d) Printing books

Ans. c) University teaching

(vi) Which one of the following statements is not true?

a) Outsourcing reduces cost and increases efficiency

b) At times, engineering and manufacturing jobs can also be outsourced.

c) BPOs have better business opportunities as compared to KPO.

d) There may be dissatisfaction among job seekers in the countries that outsource the job.

Ans. c) BPOs has better business opportunities as compared to KPOs.

2. Answer the following questions in about 30 words:

(i) Explain retail trading service.

Ans. This is the business activity concerned with the sale of goods directly to the consumers. Most of the retail trading takes place in fixed establishments or stores solely devoted to selling. It includes a small shops, consumers cooperative, chain stores, departmental stores. Street paddling, handcarts, trucks, door to door mail order, telephone, automatic vending machines and internet are examples of non-store retail selling.

(ii) Describe quaternary services.

Ans. Quaternary activities centre on research development and may be seen as an advanced form of services involving specialised knowledge, technical skills and administrative competency.

The quaternary sector, along with the tertiary sector, has replaced all primary and secondary employment as the basis for economic growth.

(iii) Name the fastest emerging countries of medical tourism in the world.

Ans. India, Thailand, Singapore, Malaysia are the fastest emerging countries of medical tourism in the world.

(iv) What is digital divide?

Ans. Opportunities emerging from the information and communication technology based development are unevenly distributed across the globe. There are wide ranging economic, political and social differences among countries. Digital divide is the difference in opportunities available to people at different places arising because of differential availability of information and communication infrastructure.

3. Answer the following questions in not more than 150 words:

(i) Discuss the significance and growth of the service sector in modern economic development.

Ans. Services occur at many different levels. Some are geared to industry, some to people, and some to both industry and people e.g. – the transportation systems. Low order services such as grocery shops and laundries are more common and widespread than high order services or more specialised ones like those of accountants, consultants and physicians. Services are provided to individual consumers who can afford to pay for them. For example the gardener, the launderers and the barber do primarily physical labour. Teacher, lawyers, physicians, musicians and other perform mental labours.

Service sector is well developed in regions where there is high technological and educational know how. There is an increase in international trade of services. Services once generated can be easily availed by many and provide high monetary value in terms of wages or service charges. As a country develops, more and more people shift to tertiary activities and the share of tertiary activities in the GDP is even faster. Service sector provides the most lump sum amount of foreign exchange and income for the country. Therefore, service sector is a major contributor in the modern economic development.

(ii) Explain in detail the significance of transport and communication services.

Ans. Transport is a service of facility by which persons, manufactured goods and property are physically carried from one location to another. It is an organised industry created to satisfy men’s basic need of mobility. Modern society requires speedy and efficient transport systems to assist in the production, distribution and consumption of goods. At every stage in this complex system, the value of the material is significantly enhanced by transportation. Transport activities are essential to carry out trade services. Transportation is also essential for defence purposes. It links different parts of country with each other and with other countries as well. It increases national and global linkage. It also links rural areas with urban areas and helps in assuring development even in rural and backward areas. It makes more places suitable for setting up industries and hence helps in increasing job opportunities.

Communication services involve the transmission of words and messages, facts and ideas. Human beings have used different methods for long distance communications. Of which the telegraph and telephone are important. Even today, the telephone is the most commonly used mode. In developing countries, the use of cell phones made possible by satellites is important for rural connectivity. These allow large quantities of data to be transmitted rapidly, security and virtually error free with the digitization of information in the 1990s. Telecommunication slowly merged with computers to form integrated networks termed as Internet.

Communication through satellites emerged as a new area in communication technology. These have rendered the unit cost and time of communication invariant in terms of distance. Cyberspace exists everywhere. It may be in an office, sailing boat, flying plane, and virtually anywhere. As billions use the internet each year, cyberspace will expand the contemporary economic and social space for humans through email, ecommerce, e-learning and e- governance. Internet, together with fax, television and radio will be accessible to more and more people, cutting across place and time. It is these modern communication systems, along with transportation that has made the concept of global village or reality a major contributor in the modern economic development.

Question Bank:

Very short answer type questions:

1. Define tertiary activity.

Ans. Tertiary activities are related to the service sector. Manpower is an important component of service sector as most of the tertiary activities are performed by skilled labour, professionally trained experts and consultants. These services require theoretical knowledge and practical training.

2. What are the types of tertiary activities?

Ans. The types of tertiary activities are trade and commerce, transport, communication services etc.

3. Define trade.

Ans. Trade is essentially buying and selling of items produced elsewhere. All the services in wholesale and retail trading of commerce are specifically intended for profit.

4. What are trading centres?

Ans. The towns and cities were buying and selling of goods take place is known as trading centres.

5. Give examples of rural marketing centres.

Ans. Examples of rural marketing centres involve

a) Local mandis or periodic markets – which may be weekly by weekly, monthly,

b) Annually (Surjkund Mela, Pushkar Mela, Camel festival in Bikaner, Rajasthan).

6. What are periodic markets?

Ans. Periodic markets in rural areas are found where there are no regular markets and local periodic markets are organised at different time intervals, may be weekly by weekly etc. These markets are held on specified dates and move from one place to another.

7. What is the typical characteristic of urban marketing centre?

Ans. Urban marketing centres have widely specialised urban services providing ordinary goods and services to specialised goods as per the demand.

8. What is retail service?

Ans. Retail trading is the business activity concerned with the sale of goods directly to the consumers.

9. Give any two examples of quaternary activities.

Ans. Collection of information and dissemination are the examples of quaternary activities.

10. Why is India popular tourist destination in the world?

Ans. India is a popular tourist destination because of warmer places on west coast, favourable climate conditions, heritage homes, historical places, scenic landscape, national parks, medical services etc.

11. Evaluate the importance of quaternary activities.

Ans. The quaternary activities have replaced most of the primary and secondary activities as the basis of economic growth. Over half of the workers in the developed economies are the knowledge sector.

12. What is wholesale trading service?

Ans. Wholesale trading constitutes bulk business through numerous intermediary merchants and supply houses and not enough retail stores. Wholesalers often extend credit to retail stores to such an extent that the retailer operates very largely on the wholesaler’s capital.

13. Define transport and communication.

Ans. Transport is a service or facility by which people, materials, and manufactured goods are physically carried from one site to another. Communication services involve the transmission of word and massages facts and ideas.

14. Give an example of informal service sector.

Ans.  Some examples of informal service sector are those people helping in domestic services. Eg – dabbawalas in Mumbai, housekeeping, cooking, gardening etc.

15. Which is the world’s single largest territory activity?

Ans. Tourism is the world’s single largest tertiary activity in total registered jobs and total revenue.

16. Define quaternary activity.

Ans. Quaternary activities are knowledge oriented. They involve the collection, production and dissemination of information. The Centre on Research and Development (R&D) may be seen as advanced form of services involving specialised knowledge and technical skill.

17. Give examples of services from quaternary sector.

Ans. Some examples of services from quaternary sector involve mutual fund managers, tax consultants, software developers, teachers, hospital and doctor offices, accounts, etc.

18. Define Quinary activity.

Ans. Quinary activities or services focus on the creation or in rearrangement and interpretation of new and existing ideas, data interpretation and the use of evaluation of new technologies. People involved are referred to as Gold Collar workers.

19. Name types of activities included in service sector.

Ans. The types of activities included in the service sector are:

a) Tertiary activities

b) Quaternary activities

c) Quinary activities

20. What do you mean by isochrone lines?

Ans. Isochrone lines are drawn on map to join places having equal in terms of the time taken to reach at given points.

Short answer type questions:

1. What are the components of tertiary activity?

Ans. Tertiary activities include both production and exchange. Production improves the provision of services that are consumed. The output is indirectly measured in terms of wages and salaries. Exchange involves trade, transport and communication facilities that are used to overcome distance. Tertiary activities involve the commercial output of services rather than the production of tangible goods. Eg – work of a technician, driver, lawyer, administrator, publisher etc.

2. Explain retail trading services with example.

Ans. This is the business activity concerned with the sale of goods directly to the consumers. Most of the retail trading tricks place in fixed establishments or stores solely devoted to selling. Street peddling, handcarts, trucks, door to door, male order, telephone, automatic vending machines and Internet are examples of non-store retail trading.

3. How is transport distance measured?

Ans. Transport is a service or facility by which people, material, and manufactured goods are physically carried from one place to another. Transport distance can be measured as in kilometre distance or actual distance of root length with time distance, or the expense of travelling on a route. In selecting the mode of transport, distance in terms of time and cost is determining factor and it affects transport services.

4. Enlist the factors that affect transport services.

Ans. Demand for transport is influenced by the size of population or freight. The larger the population size or freight, the greater is the demand for transport. Routes depend on location of sites, towns, villages, industrial centres and raw materials, pattern of trade between them, nature of the landscape between them, type of climate and funds available for overcoming obstacles along the length of the route.

5. Describe the characteristics of chain stores in the world.

Ans. Characteristics of chain stores:

a) Chain stores are able to purchase merchandise most economical to their specification.

b) They often direct the manufacturers accordingly.

c) They employ highly skilled specialists.

d) They have the ability to experiment in one store and apply the results to many.

6. What is the meaning of quaternary activities? State its advantages in the modern world.

Ans. Quaternary activities are developed form of services.  These include specific knowledge, technical skills and competence of communication. These are intellectual occupations whose task is to think research and develop ideas.

The advantages of quaternary activities are:

a) The activities are characterised by the highest income.

b) People in these activities are most mobile in the process of career development.

c) Due to these activities, the economic activities have stressed over larger distances across continents.

7. What are the factors that affect tourism?

Ans. Factors affecting tourism are:

a) Demand: Since the last century, the demand for holidays has increased rapidly. Improvements in the standard of living and increased leisure time permit many more people to go on holidays for the leisure.

b) Transport: The opening up of tourist areas has been added by improvement in transport facilities. Travel is easier by car with better road systems. More significant in recent years has been the expansion in air transport. Eg – air travel allows one to travel anywhere in the world in a few hours of flying time from their homes. The advent of package holidays has reduced the cost.

8. What is outsourcing? Why do some countries outsource their work? What is its outcome?

Ans. Outsourcing or contracting out is giving out work to an outside agency to improve efficiency and to reduce cost. Some of the developed countries outsource their work because of high wages in their own countries compared to the developing countries which offer similar services at much cheaper rate. So for optimal use of resources and to maximise profit, these companies outsource their work to overseas location (off-shoring). Eg – Data processing is an IT related service which can be easily carried out in Asian, East European countries where IT skill staff with good English language is available at a much lower wages. Also, overhead costs are much lower, making it all the more profitable.

9. Define medical tourism. Which countries are gaining from medical tourism? How does it help?

Ans. When medical treatment is combined with international tourism activity, it is commonly known as medical tourism. India has emerged as a leading centre with world class hospitals in the metro cities. Medical tourism brings huge benefit to their developing countries like India, Malaysia, and Thailand. There is also the trend of outsourcing the medical test and data interpretation and some centers in India, Switzerland and Australia carry on some medical services like reading of radiology images to interpreting MRIs (Magnetic Resonance Imaging) and ultrasound test. It is advantageous to patients as it provides better quality and specialised care.

10. What is meant by digital divide? Why does it vary inter country and intra country?

Ans.

a) Opportunities emerging from the Information and Communication Technology based development is unevenly distributed across the globe.

b) There are wide ranging economic, political and social differences among countries.

c) How quickly countries can provide ICT access and benefit to its citizens are the deciding factor.

d) While developed countries in general have surged forward, the developing countries have lagged behind and this is known as the digital divide.

e) Similarly, digital divides exist within countries.

f) For example, in a large country like India or Russia, it is inevitable that certain areas like metropolitan centres possesses better connectivity and access to the digital world versus peripheral rural areas.

11. Define the term information technology how it has helped in the development of quaternary activities.

Ans. Information technology is the synthesis of computer and telecommunication, transmission of stored and processed information. The information technology acts as a boon in the development of quaternary activities in the following ways:

a) Information technology brought the major breakthrough in genetic engineering, which can be applied in various fields such as engineering, medicines, healthcare, manufacturing etc.

b) The digitization of information technology has merged with telecommunication to form integrated network through Internet.

c) One of the most important repercussions of the information technology is the global cities to act as the control and command centres of the world system.

12. Explain the importance of service sector in the economic development of a country with suitable examples from the world.

Ans. Tertiary or service sector is more developed in developed countries. It includes both production and exchange. The service center is gaining importance all round the world. The employment in this sector is increasing steadily.

a) Rising agent population in Japan and North America has led to the increase in employment and development of medical services.

b) New York, Tokyo and London together cover the world for the purpose of financial trading.

c) In the developing country like India, the service sector is growing faster than the manufacturing sector.

13. Tourism highly labours intensive activity of unique kind in the world. Support this statement with examples.

Ans. Tourism is highly labour intensive activity of unique kind in the world.

a) Many local persons are employed to provide services like accommodation, meals, transport, entertainment and special shops serving the tourists.

b) Tourism fosters the growth of infrastructure, industries, retail trading and craft industries (souvenirs).

c) In some regions, storage is seasonal because the vacation period is dependent on favourable weather conditions, but many regions attract visitors all the year round.

14. Outsourcing has resulted in opening up a large number of job opportunities in the several countries. Analyse the statement with suitable examples.

Ans. Outsourcing is coming to those countries where cheap and skilled workers are available like India, China, Eastern Europe, Israel, Philippines and Costa Rica.

a) Outsourcing countries are facing resistance from job seeking youths in their respective countries.

b) New trends in Quinary services include knowledge Processing Outsourcing (KPO) and home shoring or offshoring. The latter as an alternative to outsourcing.

15. Explain the following terms:

a) Network

b) Node

c) Link

Ans.

a) Network: With the development of transport system, different places are linked together to form of a network. They are formed from nodes and links. A developed network has many links which means that places are well connected.

b) Node: A node is the meeting point of two or more roots, point of origin and a point of destination, or any sizable town along the route.

c) Link: Every road that joins two nodes is called a link.

16. How tourism has become the single largest tertiary activity.

Ans. Tourism has become the single largest activity in the total registered jobs and total revenue because:

a) It not only serves the purpose of recreation, but also it provides employment to many local people.

b) They provide services like transport, accommodation, entertainment and other services.

c) Tourism fosters the growth of infrastructure industries, retail trading and craft industry.

d) It also increases national income.

17. Write a note on the Quinary activities and their importance in today’s world.

Ans.

a) The highest level of decision makers or policy makers performs Quinary activities.

b) Quinary activities or services focus on the creation, re-arrangement and interpretation of new and existing ideas.

c) Data interpretation and the use of evaluation of new technologies are often referred to as gold collar professions.

d) They represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientist, financial and legal consultants etc.

e) Their importance in the structure of advanced economies far outweighs their numbers.

18. Explain the similarities and differences between quaternary and Quinary activities

Ans. The similarities and differences between quaternary and Quinary activities are:

Quaternary activities:

a) These services are advanced and specialised economic activities and concern mainly with information processing, research and development.

b) Offer high income.

c) These services are mainly concentrated in fast growing developed countries with specialised knowledge, technical skills and administrative competence.

d) It belongs to service sector that is knowledge oriented and can also be outsourced.

e) They are not tied to resources affected by the environment or necessarily localised by market

Quinary activities:

a) Quinary activities are the services that focus on the creation, re-arrangement and interpretation of new and existing ideas, data and technologies.

Long answer type questions:

1. Define consumer cooperative, departmental stores and chain stores.

Ans.

a) Consumer Cooperatives: A Cooperative business which is owned by its consumers for mutual sharing of benefit, after setting aside money for investment is known as consumer cooperative. Consumer cooperatives often take form of the retail outlets which are owned and managed by their consumers.

b) Departmental stores: Departmental stores are large retail establishments which have large collection of variety of goods. All organised under specific department heads. A distinct feature of this kind of retail establishment is the organising of separate departments under same roof, to facilitate buying, customer service, merchandising and control.

c) Chain stores: These are retail stores owned by a single form and spread over vast geographical areas across nation or worldwide. Chain stores are usually characterised by similar service and infrastructure environment involving similar architecture, store design, layout and choice of products.

2. State any three characteristics each of the tertiary and quaternary activities.

Ans. The three characteristics of quaternary activities are:

a) It is concerned with intangible output and includes a large diversity of services.

b) It does not involve in material production and stand in contrast to manufacturing industries which produce goods of different varieties.

c) It is very difficult to measure the output of tertiary activities, though they can be measured directly in terms of wages and salaries.

The three characteristics of quaternary activities are:

a) This is a specialised and complex category of activities which is mainly concerned with knowledge such as education, information and development.

b) Quaternary activities basically referred to the more intellectual occupations whose task is to think research and development.

c) In most of the advanced countries, the quaternary activities engage a small but growing proportion of population.

3. What are trading centres? Write a note on trading centres of the world.

Ans. Trading centres are in the towns and cities for buying and selling of items that were produced elsewhere. Trading centres may be urban or rural.

Urban centers are well organized. They provide specialised services along with the ordinary goods and services required by the people. They provide manufactured goods as well as many specialised markets, labour, housing, etc. Specialised services of lawyers, doctors, veterinary services, consultants of different professions are also available. Retail trading also takes place through specialised stores like cooperative stores, departmental stores and chain stores.

On the other hand rural marketing centers cater to nearby settlement. These are semi urban centres of emergent type and act as local collecting and dispensing centers. Personal and professional services are not well developed here. But they are important to cater to the basic demand of rural people. In rural areas, periodic markets are also organised. These markets are held on specified days and move from place to place.

4. Write a note on telecommunication services and its importance.

Ans. Telecommunication is generally distance communication and it is directly linked to the development of modern technology. It has revolutionised communications because of the speed with which messages are directed. The time reduced is from weeks to minutes. Beside the recent advancement, like mobile, telephones have made communications direct and instantaneous at any time and from anywhere. The Telegraph, fax and telex have become things of the past. Radio and television also help to relay news pictures and telephones calls to vast audiences around the world and hence they are termed as mass media. They are vital for advertising and entertainment. Newspapers are able to cover events from all corners of the world. Satellite communications release information from space. The Internet has truly revolutionised the global communication system.

5. Indicate the importance of tourism in the world today with example.

Ans. Tourism is travel undertaken for purpose of recreation rather than business. It has become the world’s single largest tertiary activity in total registered jobs for about 250 million with total revenue of 40% of the total GDP. Besides, many local persons are employed to provide services like accommodation, meals, transport, entertainment and special shop services or servicing the tourist. Tourism fosters the growth of infrastructure industries, retail trading and craft industries (souvenirs). In some regions, tourism is seasonal because the vacation period is dependent on favourable weather conditions, but many regions attract visitors all the year round.

The warmer places around the Mediterranean coast and the West Coast of India are some of the popular tourist destinations in the world. Others include winter sports regions found mainly in the mountainous areas and various scenic landscapes and national parks, which are scattered.

Historic towns also attract tourists because of the monument, heritage sites and cultural activities. All these regions are benefited from tourism through the development of infrastructure industries, retail trading and craft industries in their respective regions.

6. How is tertiary occupation helpful in promoting the economic development of a country? Explain it with suitable examples.

Ans.

a) Tertiary activities include all kinds of services provided to people, such as education, health, trade and transport etc.

b) Tertiary occupation is important in modern economic development of the country. Advertising, recruitment and personal training enhance the productivity and efficiency of the other activities and help them to maintain their significant role.

c) Advanced services like finance, insurance, information gathering, management of information services, research and development now form the core of all economic activities.

d) Modern means of transportation system has given free choice of location to industries. Quick and well developed means of transport have enabled industries to be located in any corner of the country.

e) Advanced medical sciences have increased the life span of humans. They believe in long and healthy life, which forms the most important resources for the economic development of any country.

7. Services are very important aspect for economic development of a country. Analyse the statement by explaining the components of a service sector.

Ans.

All types of services are specifically skills provided in exchange of payments. Health, education, law, governance and recreation etc. require professional skills. These services require other theoretical knowledge and practical training.

Major components of the service sectors are:

a) Finance

b) Business sector

c) Wholesale and retail trading

d) Transport and communication

e) Government at different levels

8. What is medical tourism? Explain the scope of medical services for the overseas patients in India.

Ans. When medical treatment is associated with international tourism activities, it leads itself to what is commonly stated as medical tourism. India, Thailand, Singapore and Malaysia are the fast emerging countries of medical tourism in the world.

The reasons responsible for this are:

a) The world class hospitals located in the metropolitan cities cater more patients all over the world.

b) It brings the trend of outsourcing of medical tests and data interpretation. India has been performing certain medical services ranging from reading, radiology images, interpreting Magnetic Resonance Image (MRIs) and ultrasound test.

c) Outsourcing holds tremendous advantage for patients and it is focused on improving quality.

9. What are the factors of tourist attractions?

Ans.

a) Climate: Most people from colder regions expect to have warm sunny weather for beach holidays. This is one of the main reasons for the importance of tourism in Southern Europe and the Mediterranean lands. The Mediterranean climate offers almost consistently higher temperatures than in other parts of Europe. Long hours of sunshine and low rainfall throughout the peak holiday season. People taking winter holidays have a specific climatic requirements, either higher temperatures than their own homelands or snow cover suitable for skiing.

b) Landscape: Many people like to spend their holidays in an attractive environment, which often means mountains, lakes, spectacular Sea coast and landscapes not completely altered by man.

c) History and art: The history and art of an area have potential attractiveness. People visit ancient or picturesque towns and archaeological sites and enjoy exploring castles, palaces and churches etc.

d) Culture and economy: These attract tourist with a fondness for experiencing ethnic and local customs. Besides, if a region provides for the needs of tourist at a cheap cost, it is likely to become very popular.

Home stay has emerged as a profitable business. Such as heritage homes in Goa, Manikaran in Himachal, Madikere and Coorg in Karnataka.

10. Explain the significance of service sector in modern economic development of the world.

Ans.

a) Services occur at many different levels.

b) Some are geared to industry, some to people and some to both industry and people e.g. the transport systems.

c) Low order services such as grocery shops and laundries are more common and widespread than higher order services or more specialised ones like those of accounts, consultants and physicians.

d) Services are provided to individual consumers who can afford to pay for them. For example, the gardener, the launderers and the barber do primarily physical labour. Teacher, lawyers, physicians, musicians and others perform mental labour.

e) Service sector is well developed in regions where there is high technological and educational know how. There is an increase in international trade of services.

f) Services funds generated can be easily availed by many and provide high monetary value in terms of wages, service charges etc.

g) As a country develops, more and more people shift to tertiary activities and the share of tertiary activities in the GDP is even faster.

h) Service sector provides the most lump sum amount of foreign exchange and income for the country.

Therefore, service sector is a major contributor in the modern economic development.

11. Differentiate the following:

b) Tertiary activities and secondary activities

c) Rural marketing centres and urban marketing centres

d) Retail and wholesale trading services

e) BPO and KPO

f) Communication and telecommunication

 Tertiary activities and Secondary activities

Ans.

Rural marketing centres and Urban marketing centres

Ans.

Retail and wholesale trading services

Ans.

BPO and KPO

Ans.

Communication and Telecommunication

Ans.

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