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Exercises · Q4

Q.Explain the role of trade, transport and communication as components of the tertiary sector.

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Trade, transport and communication are often treated together because they perform closely related functions: connecting a producer, wherever located, to a buyer, wherever located.

Trade — divided into wholesale trade (bulk transactions, usually between producers/importers and retailers) and retail trade (sale in smaller quantities to final consumers) — is the activity that actually brings a good from the point of production to the point of consumption, without altering the good itself. In India, retail trade in particular remains a very large employer, much of it in small, family-run, informal establishments.

Transport carries goods and people physically across space, and includes road, rail, air and water transport as well as allied activities such as warehousing and storage. Without transport, a farmer's crop could not reach an urban market, nor could a factory's output reach its buyers; transport is therefore an essential complement to both the primary and secondary sectors, quite apart from carrying passengers in its own right. …

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