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1. COMMERCE Commerce includes activities and procedures involving purchases and sales of both goods and services.

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Home Trade It is carried out within the boundaries of a country. It is also known as domestic or internal trade. The process is shown in the sequence below: PRODUCER  WHOLESALER  RETAILER  CONSUMER

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The two stages of commerce: WHOLESALING: It is carried out by wholesalers, who sell large amounts of goods. It is a buying and selling activity whose buyer is not the actual consumer of the good.

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A wholesaler buys commodities from a producer in order to sell them to another trader, a shop or a supermaket. The latter sells them to a consumer or a company that will use them as raw material to transform them into a different good.

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Mercamadrid is the largest wholesaler in Madrid with thousands of wholesalers doing business there. Their goods reach most Spanish regions and provide foodstuff for over 12 million people.

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RETAILING: It is carried out by retailers, who buy small amounts from wholesalers. It is a buying and selling activity of commodities whose buyer is the actual consumer of the good. That is, retailers sell goods directly to the public.

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Retailing takes place in markets, supermarkets, department stores …

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Home trade is found in:

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Small businesses

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Shopping centres

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E-commerce and televised home shopping

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Others: Street markets

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Foreign trade or overseas trade It is a buying and selling activity involving different countries. Imports are products, services or raw materials bought from a foreign country for use in your own country. Exports are goods, services or raw materials which are sold to a foreign country and sent there. In terms of cargo throughput, the Port of Rotterdam is one of the most important export centres in the world.

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Balance of trade: A country’s balance of trade is the difference in value, over a period of time, between the goods it imports and the goods it exports. Positive balance of trade, also known as trade surplus Negative balance of trade, also known as trade deficit Situation of total balance

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When a country exports a greater value than it imports, it is called a positive balance. Conversely, if a country imports a greater value than it exports, it is called a negative balance or a trade gap. Imports Exports Positive balance of trade Imports Exports Negative balance of trade

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Balance of payments: A country’s balance of payments is the difference, over a period of time, between the payments it makes to other countries for imports and the payments it receives from other countries for exports. It also includes other financial payments such as investments, money spent by tourists or takeovers involving foreign companies.

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Positive balance of payments Negative balance of payments Payments Payments Income Income

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2. TRANSPORT Transport is a system for taking people or goods from one place to another in all kinds of vehicles and means of transports. Cars, trucks, planes and many others circulate throughout roads, railways and some other infrastructures. The whole of it makes the transport network.

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Since transport is crucial for the economy and leisure of a country, most governments are in charge of planning and financing infrastructures.

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Heathrow Airport. London, United Kingdom AIR TRANSPORT

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3. TOURISM Tourism is the business of providing services for people on holiday, for example hotels, restaurants and sightseeing trips.

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Tourism includes: 1. Holiday trips to experience new things, relax and unwind. 2. Some other trips for different reasons: work, study, health, religion, family … 3. Besides the stay and accommodation, we find offers for transfers and activities such as day trips, shows, folkloric celebrations or events, shopping … A cruise at the Port of Barcelona. Cruises have become more and more popular in recent years.

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Factors for tourism: Economic prosperity (welfare state). Cheaper services and wide range of offers. Modernization and updating of facilities and their diversity, which allows quick trips and a comfortable stay. Puerto de la Cruz, Tenerife. The Canary Islands are a popular tourist resort for visitors all over the world.

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An increasing interest in cultural heritage (buildings, monuments) and the landscape. Cultural demand (museums, exhibitions), sport activities demand (in the sea, in the mountain), music demand (festivals, shows). Stressing urban life sometimes leads to the need of a halt to break away.

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Types of tourism On the beach In the mountains Rural

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Cultural (monuments, museums, concerts) Urban (emblematic cities and landmarks, shopping, shows, theme parks) Business (conferences, research)

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Events (music festivals, sport tournaments, local festivals) Religious (pilgrimage, religious festivals) Health (spas)

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Positive consequences of tourism They have a positive effect mostly on economy: Income: Money spent by tourists helps the state of the balance of payments. Jobs (sometimes, temporary) in hotels, restaurants, pubs…

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3. Construction of infrastructure (airports, roads, highways …) 4. Advertising of local or national products. Hopefully tourists will become fond of them.

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Negative consequences of tourism Negative effects on the environment because of the lack of precautionay measures against overexploitation. Deterioration of nature because of uncontrolled building works, especially on the coast, and due to the waste of water (golf courses, private swimming pools).

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2. Air pollution because of refuse and waste. Noise pollution from planes and cars.

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Telecommunications is the technology of sending signals and messages over long distances using electronic equipment.

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The media is part of the tertiary sector. We must distinguish between the inventions developed in the XIX and the XX centuries (newspapers, radio, television), and those gaining ground in the last decades thanks to information and communications technology (ICT).

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Telecommunications systems allow us to send and receive messages over long distances. From the 1970s onwards, computers have become more and more popular and their functions have improved considerably. Nowadays, we cannot live without them.

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The most remarkable service of the internet is the World Wide Web (www). G L O B A L I Z A T I O N

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The new technologies of information and communication are nowadays que accesible to everyone and they have an effect on some other sectors (pictures, data, sound, immediate access to information, immediate decision-making).

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Cyberspace has no barriers. The access to ICT is a reflection of the inequalities in the world because top of the line technology is controlled by the most wealthy countries.

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Features of information society 1. A huge bulk of information (data, news, pictures, movies) and easy access to it anytime and anywhere.

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2. Geographical barriers have faded out. The news, money, files or even decisions are spread out on the spot. SHOPPING WITH YOUR MOBILE

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3. Centrality. In theory, information can arisecanywhere, but in practise, the most noticeable info belongs to the most powerful developed countries.

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4. Interactive contents. Users can speak their minds or create their own messages. However, they also receive unwanted advertisements.

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5. Access to knowledge and culture (wiki – fast). The internet makes learning and info search possible, without a schedule and at any place. However, there’s one downside to it. The net is full of unverified contents, some can even be used to commit crimes. It is vital that we know how to use filters and information with sensible standards of judgement.

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SERVICE ECONOMY It is the transformation of economy and work patterns that has brought about the increased importance of the service sector in industrialized economies. For example, the most of their population work in the tertiary sector. Besides, the use of new technologies of this sector spreads out to the others. For example, robotics has decreased the amount of industry workers.

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Outsourcing: In business, it is the practice of purchasing supplies, parts or finished products from another company, or using outside workers in the manufacturing process. Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

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