Tertiary Economic Activities | Aster Classes

Chapter 6, Tertiary Economic Activities, geography, hsc, ebalbharathi, solution,

Chapter 6: Tertiary Economic Activities

1.Complete the chain:

(1) Matheran(1) Tea(1) Communication
(2) GPS(2) Atlantic Ocean(2) Tertiary Activity
(3) Sri Lanka(3) Satellite(3) Export
(4) Panama Canal(4) Tourism(4) Pacific Ocean


(1) Matheran(1) Tourism(1) Tertiary Activity
(2) GPS(2) Satellite(2) Communication
(3) Sri Lanka(3) Tea(3) Export
(4) Panama Canal(4) Atlantic Ocean(4) Pacific Ocean

Choose the correct option:

1.Tertiary activities include


  • Use of natural resources
  • Finished product
  • Raw material
  • Transportation

2.Natural ports


  • Kochi
  • Finished product
  • Raw material
  • Transportation

3.Trans-Australian Railway connects


  • Perth – Sydney
  • Perth – Vladivostok
  • Sydney – Vancouver
  • Vancouver – Vladivostok

Give geographical reasons:

1.Tertiary activities include both services and exchange.


Transportation, communication, trade and commerce are the main tertiary activities. Road, rail and airways are the important modes of transportation, which help in exchange of goods and services. Therefore, it is a service activity. Transportation provides facilities for the movement of goods from areas of surplus to areas of scarcity produced in primary and secondary activities. Credit facilities, banking facilities, marketing are also tertiary activities, they provide services to people. Postal services, shopkeepers, vegetable sellers, fruit sellers, etc., are also included in service activities.

2.The proportion of airways as means of transportation is increasing.


Air transport is an important enabler to achieve economic growth and development. In the global world, there is exchange of goods between countries. Therefore, there is more use of air transport to carry perishable, valuable and light goods from surplus areas to scarcity areas. It facilitates integration into global economy and provides vital connectivity on a national, regional and international scale. Nowadays tourism is the fastest growing industry; air transport is more used for international tourism. Therefore, the proportion of airways as means of transportation is increasing.

3.Geographical diversity is responsible for trade to occur.


The geographical diversity is the set of physical, human and cultural elements differentiated from each other that converge in the relatively small geographic space that is part of the same zone, region or country. If you take into consideration natural regions of the world, each region is different from another. The natural resource available in one country will be different from the ones available in different regions. There is variation in climate, soil, minerals, forest, relief, water supply etc. Depending upon the availability of geographical factors, there is specialisation of certain economic activities in certain areas and there is trade from surplus areas to scarcity areas. For example, in one region, plenty of oil is available while in another region no oil reserves are available. This variation in distribution of oil will be responsible for the development of trade between oil rich and oil poor countries. Thus, geographical diversity is responsible for trade to occur.

Short notes:

1.Importance of satellites as means of communication.


A communications satellite is an artificial satellite that relays and amplifies radio telecommunication signals via, transponder. Communications satellites are used for television, telephone, radio, internet and military applications. The information about physical and human factors is obtained from satellite communication. Satellite communication is used in remote islands, in some countries and continents where landline telecommunication is rare or not available. As television becomes the main market, its demand for satellite communication becomes very important. Satellites are also used for internet communication, military communications, etc. Thus, importance of satellite as means of communication is increasing.

2.Role of transportation in trade.


Transport support trade and industry in carrying raw material to the place of production and distribution of finished products for consumption. Transport means to make goods available to consumers. Transport makes possible movement of goods from one place to another with great ease and speed. Trade means exchange of goods and services. In trade there is movement of goods from surplus areas to scarcity areas. The movement of goods is possible only because of transport. In other words, without the help of transport development of trade is not possible. Thus, transport plays an important role in economic development and globalisation of trade.

3.Tourism and GDP.


Tourism is vital for the success of many economies around the world. Tourism boosts the revenue of the economy, creates thousands of jobs and develops the infrastructures of the country. It also creates jobs in agriculture, communication, health and educational sectors. The government that depends on tourism, invests a lot in the infrastructure of the country. They construct new roads and highways, develop parks, improve public places, and set up airports, etc. With augmenting facilities, more and more tourists are attracted in such countries, thus, there is boosting of the GDP.

Differentiate between:

1.Secondary economic activities and Tertiary economic activities.


Secondary Economic ActivitiesTertiary Economic Activities
(i) Secondary activities are concerned with activities adding value to already existing products from primary activities.(i) Tertiary activities are concerned with providing services rather than providing material goods.
(ii) Development of secondary activities depends upon the production of resources in primary activities.(ii) Development of tertiary activities depends upon the development of secondary activities.
(iii) Manufacturing and construction are important secondary activities.(iii) Trade, transport communication, banking, insurance, etc., are tertiary activities.
(iv) Secondary activities produce goods and commodities.(iv) Tertiary activities help reach these goods and commodities to the consumers.
(v) Secondary activities may be away from the market and settlement.(v) Tertiary activities are always near the market and settlement.

2.Quaternary and Quinary activities.


Quaternary ActivitiesQuinary Activities
(i) Quaternary activities refer to those activities where the task is to think, research and develop ideas.(i) Quinary activities involve work related to administration.
(ii) Confined to research, training and education.(ii) Confined to the highest-level decision taking and policy making.
(iii) Software developers, statisticians, hospital staff, teachers, financial planners tax consultants, people working in theatres, etc., comes under quaternary activities.(iii) Senior business executives, government officials, scientists, judges, etc., comes under quinary activities.

3.Waterways and Airways.


(i) Development of water transport needs courted area with broken coastlines.(i) Development of airways needs favourable climate, advance technology and plain land for airports.
(ii) This is the cheapest mode of transport.(ii) This is an expensive mode of transport.
(iii) Heavy and bulky goods are transported, e.g., minerals, oil, coal, machinery, etc.(iii) Light, perishable and expensive goods are transported, e.g., electronic goods, gold, silver, fish, dairy products, etc.
(iv) Slow mode of transportation.(iv) Fast mode of transportation.
(v) More used for goods transport than passengers’ transport(v) More used for passengers’ transport than for goods transport.

Answer in detail:

1.Explain the factors affecting trade between two countries.


Trade refers to transfer of goods or services from one person to another or from one country to another. Factors which affect the trade are natural resources, climate, population, culture, economic cost, specialization, etc.

Natural resources: Distribution of natural resources is uneven. The natural resources available in one country differs from another. Because of this uneven distribution of resource, there is trade between resources surplus and resource deficit.

Climate: Climate mainly affects the plants and animals in a region. In the areas of different climate, there are different types of plants and animals. Example, in the tropical countries like Sri Lanka whose major export is tea or Malaysia and Indonesia, whose major export is rubber. This occurs naturally because of favourable climate for growing tea and rubber plants in these countries.

Population: Population size, distribution and density are different in different countries. This leads to difference in production and consumption and hence trade occurs. Standard of living can also determine the demand for various goods and services. The country with less population depends more on trade because fewer human resources is engaged in production of goods.

Culture: Some countries are known for their specific art and craft, based on their culture, specific production of goods which have worldwide market, for e.g., Kashmiri shawls or Iranian carpets.

Economic Cost: Cost of production is the major factor in the process of production. It is cheaper to import certain goods than producing it in the country itself. For example, it is cheaper to import tea from India and Sri Lanka than producing it in England.

Specialisation: Due extremely favourable factors of production, some countries have specialisation for certain goods and they have name and fame in the world market, so they develop export trade. For example, watches of Switzerland or electronic goods of Japan or tender beef of Argentina.

Government Policy: Government policy about export or import affects trade. For example, Government may increase import duties of some goods, to encourage people to buy domestic goods. Thus, import trade of those goods goes down.

2.Development of transportation is dependent on geographical factors. Explain.


Various geographical factors affect the development of transport.

  1. Relief, climate and location are the three most important factors that affect the development of transportation.
  2. It is easier to build roadways and railways in plain areas.
  3. Dense forests, hilly and mountainous regions affect the construction of roads and railways, in Africa and South America.
  4. Coastal location with broken coast lines is favourable for development of ports and harbours.
  5. For the development of airways; favourable climate and plain region for construction of airports are essential.
  6. Foggy and smoggy weather and high peaks will be obstacles for the development of air transport. 

3.Why is transportation system important in the development of any nation?


Transportation plays important role in rapid economic growth of a nation. The introduction of railways has been historically the most important and powerful single factor in the process of economic development of industrial nations of the world like USA, France, Germany, Japan, etc. The significance of transportation in economic activity is found in its effects on both human wants and satisfaction of wants through production and distribution of goods. Transportation increases the quality and variety of consumer goods, thereby stimulating the demand and development of trade and economy of the nation. Transport provides various employment opportunities and boosts up the economy of the country. For example, many people got employment in construction work of Metro rail track.

4.Tertiary activities are expanding day-by-day. Explain the statement.


Tertiary activities act as the link between primary and secondary activities. These activities are mostly in the form of services. Tertiary activities include transport and communication, trade, loading and unloading of goods, banking, insurance, marketing, export, etc. Providing public services like hospital, education, research and development, administration, etc., are also included in tertiary activities. With increasing industrialisation population growth and trade, number of people working in banking, insurance, tax consultants, software developers, teachers, etc., went on expanding day by day.

1.On an outline map of the world, show the following with the help of suitable index:

  1. A Canal bringing radical change in sea transport.
  2. Railway connecting two continents.
  3. An international airport in India.
  4. An important port in India.


1.Read the given passage and answer the following questions:

Careful planning and implementation is necessary for economic development of any country. In the tourism sector the need for planned development is of great importance. It involves many industries working together in a complex way and needs special attention. Planning basically tries to allot limited resources between various competitors with a view to maximize output, income and employment and to make sure different sectors have fair growth. Tourism planning is a process through which the set goals can be achieved and the various choices linked to tourism development can be addressed. It is a long term and constant process of preparing, upgrading and improving a destination for tourist. Communities are the basic elements of tourism. It mainly depends upon the level of acceptance shown by local communities. In the process of planning their involvement is essential The development of tourism creates impact on mainly environment, socio-culture and economy of the host community at any destination. These impacts produce both negative as well as positive impacts. Planning is necessary to reduce the negative impact and boost the positive impact for sustainable development of a destination.

  1. Why does the tourism sector need planning?
  2. What is the importance of communities in planning?
  3. Explain any two benefits of planning.
  4. What factors affect the economy of the host community?
  5. Why planning is a long-term task?


  1. Why does the tourism sector need planning?
    Plan development in the tourist sector is of great importance, since it involves many industries working together in a complex and hence special attention. Planning will help to allot limited resources between various competitors with view to maximise output, income and employment.
  2. What is the importance of communities in planning?
    In the process of planning communities are basic elements of tourism. It mainly depends upon level of acceptance shown by local communities. In the process of planning their involvement is necessary and therefore, community planning is necessary.
  3. Explain any two benefits of planning.
    Planning reduces the negative impact and boosts the positive impact for sustainable development of a destination.
  4. What factors affect the economy of the host community?
    The development of tourism creates impact on mainly environment socio-culture and economy and economy of host community at any destination.
  5. Why planning is a long-term task?
    Planning is a long-term task because planning is a constant process of preparing, upgrading and improving a destination for tourists.



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