The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector (approximately the same as manufacturing), and the primary sector (raw materials).
The service sector consists of the production of services instead of end products. Services (also known as "intangible goods") include attention, advice, access, experience, and affective labor. The production of information has long been regarded as a service, but some economists now attribute it to a fourth sector, the quaternary sector.
The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people interacting with people and serving the customer rather than transforming physical goods.
It is sometimes hard to define whether a given company is part and parcel of the secondary or tertiary sector. And it is not only companies that have been classified as part of that sector in some schemes; government and its services such as police or military, and non-profit organizations such as charities or research associations can also be seen as part of that sector.
In order to classify a business as a service, one can use classification systems such as the United Nations' International Standard Industrial Classification standard, the United States' Standard Industrial Classification (SIC) code system and its new replacement, the North American Industrial Classification System (NAICS), the Statistical Classification of Economic Activities in the European Community (NACE) in the EU and similar systems elsewhere. These governmental classification systems have a first-level hierarchy that reflects whether the economic goods are tangible or intangible.
For purposes of finance and market research, market-based classification systems such as the Global Industry Classification Standard and the Industry Classification Benchmark are used to classify businesses that participate in the service sector. Unlike governmental classification systems, the first level of market-based classification systems divides the economy into functionally related markets or industries. The second or third level of these hierarchies then reflects whether goods or services are produced.
For the last 100 years, there has been a substantial shift from the primary and secondary sectors to the tertiary sector in industrialized countries. This shift is called tertiarisation. The tertiary sector is now the largest sector of the economy in the Western world, and is also the fastest-growing sector. In examining the growth of the service sector in the early Nineties, the globalist Kenichi Ohmae noted that:
Economies tend to follow a developmental progression that takes them from a heavy reliance on agriculture and mining, toward the development of manufacturing (e.g. automobiles, textiles, shipbuilding, steel) and finally toward a more service-based structure. The first economy to follow this path in the modern world was the United Kingdom. The speed at which other economies have made the transition to service-based (or "post-industrial") economies has increased over time.
Historically, manufacturing tended to be more open to international trade and competition than services. However, with dramatic cost reduction and speed and reliability improvements in the transportation of people and the communication of information, the service sector now includes some of the most intensive international competition, despite residual protectionism.
Service providers face obstacles selling services that goods-sellers rarely face. Services are intangible, making it difficult for potential customers to understand what they will receive and what value it will hold for them. Indeed, some, such as consultants and providers of investment services, offer no guarantees of the value for price paid.
Since the quality of most services depends largely on the quality of the individuals providing the services, "people costs" are usually a high fraction of service costs. Whereas a manufacturer may use technology, simplification, and other techniques to lower the cost of goods sold, the service provider often faces an unrelenting pattern of increasing costs.
Product differentiation is often difficult. For example, how does one choose one investment adviser over another, since they are often seen to provide identical services? Charging a premium for services is usually an option only for the most established firms, who charge extra based upon brand recognition.
Examples of tertiary industries may include:
Below is a list of countries by service output at market exchange rates in 2016.
Countries by tertiary output in 2016 (billions in USD)
|(01) United States|
|(—) European Union|
|(05) United Kingdom|
|(13) South Korea|
3O or 3-O may refer to:
3J, IATA code for Jubba Airways
3O, IATA code for Air Arabia Maroc
3o Sector, see Tertiary sector of the economy
3o Gymnasio Agias Paraskevis, see 3rd Gymnasium of Agia Paraskevi
3-O-sulfation, a phenomenon occurring in Heparan sulfateAdrian Howells
Adrian Howells (9 April 1962 – 16 March 2014) was a British performance artist associated with one-to-one performance and intimate theatre. He performed in the United Kingdom and internationally (including in Israel, Singapore, Canada, Japan, Germany, Italy and other countries). He was a pioneer of one-to-one performance, in which an artist repeats and adapts a score for a performance for a single audience member, or audience-participant, and repeats the action serially across a run of several days. The process and outcomes in Howells' signature works were frequently modelled on activities associated with the service industries or the tertiary sector of the economy, such as washing the audience-participant's hair or clothes, or giving an audience-member a bath, replicating in some ways the labour of a hairdresser, laundry worker, or caregiver; or he appropriated and adapted intimate interpersonal experiences in carefully mediated situations, like talking around a script or score in a setting such as a Japanese rock garden in The Garden of Adrian (2009), or holding hands, listening to music, and spooning in silence in Held (2008).Appraiser
An appraiser (from Latin appretiare, "to value"), is one who determines the fair market value of property, real or personal. In England the business of an appraiser is usually combined with that of an auctioneer, while the word itself has a similar meaning to that of "valuer."Bintulu Development Authority
Bintulu Development Authority (Malay: Lembaga Kemajuan Bintulu) (BDA) is a local council which administers Bintulu town and other areas of Bintulu Division. The agency is under the purview of Sarawak Ministry of Local Government and Community Development.Commercial building
Commercial buildings are buildings that are used for commercial purposes, and include office buildings, warehouses, and retail buildings (e.g. convenience stores, 'big box' stores, and shopping malls). In urban locations, a commercial building may combine functions, such as offices on levels 2-10, with retail on floor 1. When space allocated to multiple functions is significant, these buildings can be called multi-use.
Local authorities commonly maintain strict regulations on commercial zoning, and have the authority to designate any zoned area as such; a business must be located in a commercial area or area zoned at least partially for commerce.Conditional sale
A conditional sale is a real estate transaction where the parties have set conditions.
A standard real estate transaction usually begins when a prospective purchaser submits an offer to purchase to the vendor of a property. As in a standard offer, a conditional offer sets out the terms of the sale such as the purchase price, the date of closing, the names of the parties, and the amount of any required deposit, but it also stipulates various conditions which must be met in order for the contract to be binding on the parties. These conditions may include approval by a co-purchaser, financing acceptable to the purchaser, the receipt and review of a survey showing that the buildings on the property comply with local zoning regulations, a title search showing no unacceptable liens or encumbrances, confirmation from the current mortgagee that the property is not in foreclosure, and the like. If the offer is accepted by the vendor, the offer to purchase will become a contract binding on the parties when all conditions are satisfied.
An alternative to a conditional sale is an invitation to treat. Unlike a conditional sale, an invitation to treat does not become binding upon satisfaction of any conditions. Issues arise as to the distinction between actions which constitute an offer or an invitation to treat, especially when the intentions of the parties are not clearly specified at the time.Corporate real estate
Corporate real estate is the real property held or used by a business enterprise or organization for its own operational purposes. A corporate real estate portfolio typically includes a corporate headquarters and a number of branch offices, and perhaps also various manufacturing and retail sites.Encumbrance
An encumbrance is to, interest in, or legal liability on real property that does not prohibit passing title to the property but that may diminish its value. Encumbrances can be classified in several ways. They may be financial (for example, liens) or non-financial (for example, easements, private restrictions). Alternatively, they may be divided into those that affect title (for example, lien, legal or equitable charge) or those that affect the use or physical condition of the encumbered property (for example, restrictions, easements, encroachments). Encumbrances include security interests, liens, servitudes (for example, easements, wayleaves, real covenants, profits a prendre), leases, restrictions, encroachments, and air and subsurface rights. Also, those considered as potentially making the title defeasible are encumbrances, for example, charging orders, building orders and structure alteration. Encumbrance: charge upon or claim against land arising out of private grant or a contract.Garden real estate
Garden real estate is a category in the niche real estate market containing property with good gardens. The market can be sub-classified as follows:
Property with gardens by well-known landscape designers. This is normally the work of designers whose work has been published in books and magazines. The art market equivalent is the work of artists who are recognized, and has a market value, because their work has been exhibited and catalogued.
Property with gardens by people who hold professional qualifications in garden design, landscape design, or landscape architecture.
Property with large and/or beautiful gardens designed by their owners.Since gardens are a highly income-elastic goods, the garden real estate sector tends to grow rapidly as countries industrialise.Golf property
The term golf property is used to describe a niche in the property market: residential real estate linked to a golf course. Golf property can be in the ownership of the golf course or in proximity to the golf course. The idea of combining the design of a golf course with a subdivision housing property originated in the US and is now found in many parts of the world.
In the United States, there are over 2,000 golf courses with surrounding residential properties. Homes, townhouses, and condos make up the majority of golf properties in the US. In recent years, the concept has gone global with golf communities stretching from Dubai to Australia. Legendary golfers such as Jack Nicklaus, Arnold Palmer, and Greg Norman have played a key role in the increased rate of development through partnership with national and global home builders including Lennar, Toll Brothers, and others.Hard money loan
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans, starting at 7.7%, because of the higher risk and shorter duration of the loan.Outline of entertainment
The following outline provides an overview of and topical guide to entertainment and the entertainment industry:
Entertainment is any activity which provides a diversion or permits people to amuse themselves in their leisure time, and may also provide fun, enjoyment, and laughter. People may create their own entertainment, such as when they spontaneously invent a game; participate actively in an activity they find entertaining, such as when they play sport as a hobby; or consume an entertainment product passively, such as when they attend a performance.
The entertainment industry (informally known as show business or show biz) is part of the tertiary sector of the economy and includes a large number of sub-industries devoted to entertainment. However, the term is often used in the mass media to describe the mass media companies that control the distribution and manufacture of mass media entertainment. In the popular parlance, the term show biz in particular connotes the commercially popular performing arts, especially musical theatre, vaudeville, comedy, film, and music. It applies to every aspect of entertainment including cinema, television, radio, theatre, and music.Post-industrial economy
A post-industrial economy refers to a period of growth within an industrialized economy or nation in which the relative importance of manufacturing reduces and that of services, information, and research grows.
Such economies are often marked by:
A declining manufacturing sector, resulting in de-industrialization.
A large service sector.
An increase in the amount of information technology, often leading to an "information age". Information, knowledge, and creativity are the new raw materials of such an economy.The industry aspect of a post-industrial economy is sent into less developed nations which manufacture what is needed at lower costs (see outsourcing). This occurrence is typical of nations that industrialized in the past such as the United Kingdom (first industrialised nation), most of Western Europe and the United States.Professional services
Professional services are occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, accountants, engineers, doctors and lawyers. Other professional services involve providing specialist business support to businesses of all sizes and in all sectors; this can include tax advice, supporting a company with accounting, IT services or providing management advice.Real estate in Italy
Italy has always been a country rich in real estate, in particular, luxury property.Real property administrator
The real property administrator (RPA) designation is a professional designation for people who work in property management. The designation is administered by Building Owners and Managers Institute (BOMI) International, an independent nonprofit institute for property and facility management education.The designation requires the completion of eight courses (available online, by textbook study or in a classroom format) as well as three years of qualifying, documented experience in property management at a property 50,000 square feet (4,600 m2) or larger. BOMI International courses are often conducted by BOMA (Building Owners and Managers Association) local organizations as an educational benefit for their members, and by corporations as part of their internal training for property management professionals. Approximately 4,200 persons maintain the RPA designation, including about 3,500 in the United States and 700 in Canada.
The program includes coursework on building systems design, operation, and maintenance; commercial real estate law; investment and finance; risk management and insurance; leasing and marketing; asset management; environmental health and safety; and business ethics.Stane Kavčič
Stane Kavčič (30 October 1919 – 27 March 1987) was a Slovenian communist politician within the Socialist Federal Republic of Yugoslavia.
He joined the Communist Party of Yugoslavia in 1941 and participated in the Liberation Front of the Slovene Nation. Within the Socialist Republic of Slovenia, he was vice president of the presidium of the People's Assembly (1949–1950), vice president (1951–1956) and president (1967–1972) of the executive council, the latter post being the equivalent of prime minister. Economic reform had been initiated in 1965, and while in office, he continued liberal policies of regional development, expansion of the tertiary sector of the economy, an increase in exports and openness toward the West. Scandals that marked his administration included the 1968 Ciril Žebot scandal, the 1969 Road Scandal and the 1971 scandal of the 25 delegates. In autumn 1971, party conservatives began organizing a purge of liberals from Slovenia's institutions. Kavčič was forced to resign the following year and was excluded from public life until his death in Ljubljana.Third sector
Third sector may refer to:
Voluntary sector, the economic sector consisting of non-governmental organizations and other non-profit organizations
Public–private partnership, a company jointly owned by government and private interests
Third Sector (magazine), a British magazine