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How is the Tertiary Sector different from other Sectors?

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  • Last Updated : 03 Nov, 2022
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The economy is divided into three sectors: primary, secondary, and tertiary sectors. The primary sector involves the extraction and production of raw materials. For example- farming, hunting, mining, poultry, etc. The secondary sector involves the manufacturing and processing of raw materials. For example, manufacturing automobiles, chemicals, energy utilities, and aerospace equipment, etc. The tertiary sector is also known as the service sector as they provide service directly to the general public or companies associated with all sectors. For example-education, banking, tourism, etc.

How is the tertiary sector different from other sectors?

Compared with the primary and secondary sectors, the tertiary sector is different. This is because of:

The tertiary sector doesn’t manufacture the items on its own like the other two sectors.

For example, The primary sector extracts the raw materials and then the secondary sector manufactured them. For instance, the primary sector produces tomatoes through agricultural practices, and the secondary sector manufactured them in factories and makes a product like bottles of ketchup, tomato puree, sauces, and many more products. The tertiary sector only deals with the sales and marketing of these products not the manufacturing of these products.

The tertiary sector includes the activities which help in the production process of other sectors.

For example, The tertiary sector includes expertise, finance, solutions, and storage which help in the production of the other two sectors of economy. For instance, if the primary sector produces tomatoes, they need storage for a short time till the factories of the secondary sector will collect them then the tertiary sector will provide storage. And same is in the secondary sector, manufactured products, and are damaged due to any reason then they require some expertise then the tertiary sector will provide the expertise. 

The tertiary sector generates various services at various levels with numerous objectives rather than producing them.

For example, the tertiary sector has objectives like providing service directly to the general public or companies associated with all sectors. For instance, the primary sector produces potatoes and then the secondary sector manufactured potatoes and generates products like potato chips then the tertiary sector deals with the selling of potatoes and potato chips to the general public.

The tertiary sector also involves activities that are not essential in producing goods. 

For example, Lawyers, medical professionals, etc. are not involved in the extraction and production of the primary sector and manufacturing and processing of the secondary sector.

The tertiary sector directly provides services to the general public.

For example, in banking, where managers and clerks are there for the general public to help related financial and banking-related issues and aware the general public of the new schemes for their benefit.

The tertiary sector is also involved in cold storage facilities or Godowns for raw materials that are manufactured, processed, or directly extracted and produced.

For example, the production and extraction of primary sectors and the processed and manufactured products of the secondary sector, both need storage, which will be provided by the tertiary sector. For instance, if the Primary sector produces chili pepper, then they need storage till they are reaching to the general public, the tertiary sector will provide them. And same is in the processed product of chili pepper of secondary sector need storage, then the tertiary sector will provide them.

The products which we get from the primary and secondary sectors, those products are carried to their final destination before being sold in wholesale or retail also coming in the tertiary sector.

For example, the primary sector produces potatoes and then the secondary sector processed the potato and generates products like potato chips then potatoes and potato chips are carried to the consumer or the general public with the help of Transportation services which is the activity included in the tertiary sector.  

Credit and Communication

Credit is necessary for commerce and production, thus borrowing from banks will be necessary. In addition, communication through phone or letter is essential to complete the operations involved in trade and production which is also a part of tertiary sector activity.

FAQs on Tertiary Sector

Question 1: Name the classification of economic activities.

Answer:

Economic activities are classified into 

  1. Primary Sector
  2. Secondary Sector
  3. Tertiary Sector

Question 2: Which sector deals with the sales and marketing of raw materials and its products?

Answer:

The tertiary sector deals with the sales and marketing of raw materials and their products.

Question 3: Name the examples of the secondary sector.

Answer:

Manufacturing of chemicals, energy utilizes, automobiles, and aerospace equipment are examples of secondary sectors.

Question 4: Mention the three important differences between tertiary and the other two sectors.

Answer:

The three important differences between tertiary and the other two sectors are:

  1. The tertiary sector doesn’t manufacture the items on its own like the other two sectors.
  2. The tertiary sector directly provides services to the general public.
  3. The tertiary sector is also involved in cold storage facilities or Godowns for raw materials that are manufactured, processed, or directly extracted and produced.
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