describe the factors encouraging the recent growth of tertiart and quaternary activities in high income country
Answers
Answer:
Important points about tertiary and quaternary sectors:
These two sectors involve the provision of a wide range of services.
The tertiary sector grows in importance with economic development – it generates employment and economic wealth.
The quaternary sector is only found in the most economically advanced countries – it is largely about information and communication and makes use of the latest technology.
The following are result of a country moving along the development pathway:
It is able to afford more and better social services, such as schools, medical centres, hospitals and libraries.
People earn more money and have money to spend in shops on basic things, such as food and clothing.
After they have bought the basic, people have more money left (disposable income) to spend on luxuries, such as entertainment, holidays, eating out and recreation.
Peoples tastes change and this impacts the tertiary sector. For example cinemas have closed because many people now prefer to watch DVDs at home.
New technology creates and makes possible new services. Think of all those new services. Think of all those new services connected with ICT – broadband service providers, website designers, mobile phone networks, software programmers and the services.
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The image above shows the cycle of growth within tertiary sector. However, there are two other reasons for the rise of the tertiary sector, particularly in the UK and other HIC’s. First the tertiary sectors share of employment and GDP have been inflated by the decline in the primary and secondary sectors. Secondly, the population is becoming older on average. Fifteen percent of the UK’s population is over 65 years old. The rates of spending amongst retired people are rising faster than in any other age group. These `SKI-ers`, so called because they are spending the children’s’ inheritance, are keen shoppers and tourists. The `grey pound` has a growing power and influence within the tertiary sector.
The key factors in the growth of tertiary activities are the rise in prosperity and personal wealth, together with the use of new technology.
Location
Almost all economic activity, whether it is a quarry, factory or a shop will be located specifically in a particular place for certain reasons depending on the business, these reasons are called location factors. Some of these factors need to be for filled for the needs of the activity for example the most common need for a shop would be accessibility to customers.
The fact that accessibility is a key location factor explains why so many services are found concentrated in the central areas of towns and cities or the central business districts (CBD’s) and can be located in (LIC’s) and (HIC’s) alike.
The CBD’s are accessible because this is where the urban transport around these areas and connecting these areas also converge. Costumers of these services in the CBD are not just urban resistant’s, they come from outside, from all places lying within the town or cities sphere of influence.