Unit 9 service sector

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Unit 9 service sector

  1. 1. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo UNIT 9: SERVICE SPACES 1. Spain’s economy towards third sectorThe third sector comprises services given to society. It is a heterogeneous sector. Itstarted its expansion since the 60s decade and nowadays it occupies more than half ofthe working population.The reasons for the development of third sectors are: - increase of living standards - industry requires some services and its development implied the development of other activities, banks and others - development of tourism - increase of public services - entrance of women in the work market (need for kindergartens, for instance). 2. Heterogeneity from region to regionService sector is heterogeneous and there are several ways of classifying the activitiesinvolved in it: - private and public sectors - services devoted to sales - intermediate services or last consumption services - interrupted services or in different levelsIn Spain the third sector presents some lacks. The main activities are traditional andservices offered to companies are not very important. - Services provided by State Administration are the most important because they create a good number of jobs, followed by commercial services. - Taking into account the number of workers some of them have lost weight: transports and telecommunications, immovable assets, credit and insurances, management and supply services. 1
  2. 2. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo - Services given to companies are not very developed but their evolution has been positive (lawyers, accountancies, management). - Hotel and catering have improved and linked to them tourism and other free time activities.In all Autonomous Regions third sector is hegemonic, judging by their part in the GDPor the number of people involved in tertiary activities. Anyway there is disequilibriumbetween regions because even if they can be established in any place, there are someconditionings: population volume, urbanization level, development and rents. a) Jobs are more abundant in tertiary sector, mainly those related to tourism near the coasts, related to State administration in Madrid. The importance is smaller in agricultural territories. b) The different sectors of tertiary sector have different weight. - Services addressed to companies are developed in few provinces - Services linked to consumption are more common in touristy areas - Non specialised services: those controlled individually.In the future the differences inside the tertiary service may increase. The situationnowadays is similar to other European countries. The development will be aimed atimproving quality and diversifying services. 3. Transports and communicationsTransport system is devoted to transport people andproducts from a place to another. It has an important rolein economy and spatial organization: a) Transports and territories influence each other: a. Transports indicate population distribution and spatial disequilibrium of development, because they tend to be located in capitals or economically important areas b. They can influence on changes because they are a key element to develop regions. b) Transports net organise the territory: they link different regions and movements are easier and faster thanks to new technologies.Characteristics of transport system a) Physical environment is not good: relief is complicated and some elements of the climate make communications more difficult. Thanks to modern technologies some difficulties have been overcome but costs are high and this reduces productivity. 2
  3. 3. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo b) Land and air nets are radial: They tend to link any point of the geography with Madrid. This model started with the Bourbons and continues nowadays. c) The main transport used by passengers and products is motorway because they offer direct service at arriving at any point. d) The net has important disequilibrium from one region to another: there are some main axes while other regions lack of communications. e) Jurisdiction over transport has been decentralized with the creation of autonomies: the State controls national communications whereas autonomous government control communications operating in their regions exclusively f) Transports in Spain are controlled by the Guide Plan for Infrastructures; depending on them transport policy is part of the territorial organization, one of its aims is to increase speed and reduce the number of accidents; they promote the links between different regions and communities; they try to recover spaces degraded through public works. g) Spain’s communication net is included in the European net and some European policies are used: a. Improve links with the EU b. Fund of the EU are directed to the improvement of infrastructures c. Reduce the impact of communications in environment by assuming appropriate measures. h) Communications have an impact in environment: visual, sounds, pollution, due to these projects are studied to valuate the impact aiming at correcting possible problems.Road transportsRoad net links populated regions. It is an essential infrastructure. The characteristics ofSpain’s motorways are: a) Radial structure: a majority of the roads crossed Madrid, establishing links with developed and industrialised areas. b) The control of the roads belongs to the State, Autonomous communities and Provincial governments. c) Technical characteristic are varied, being the most appropriate those of national level whereas others present more deficiencies. d) It is used by a majority of the traffic of people and products. e) There are important differences between regions: 3
  4. 4. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo a. Density is higher in developed and industrial areas, in areas with spread population, in regions with divided by the orography or islands. b. Intensity of traffic is higher in indirect corridors because in them are the main industrial and touristy spaces. c. Communications easiness in industrial or touristy regions due to the needs. f) Guide Plan for Infrastructures 1993-2007 had as objectives: a. A complete development of communications all over the State b. Improve the quality and security of motorways c. Stress the development of indirect axes g) Spanish roads must have a better link with the EU, for that new motorways are projected and the capacity of the existent ones is going to be developed.Train transportsTrain was the main means of transport during the second half of 19 th century and thebeginning of the 20th. After that the situation changed when new transport appearedand the critical financial situation did not help its development because exploitationcosts are very high. Due to this many lines have disappeared but some of them havechanged their orientation to be left for tourism.The main characteristics of Spain’s train net are the following: a) The Spanish Train National Net (RENFE) controls 90 per cent of the traffic. It has radial distribution and then tree structure in cities of secondary level, what permits to cover big areas with few lines and reducing costs. EU has urged Spain to limit the role of RENFE in railroad’s financiation. There are other lines such as: a. Train of narrow railway (FEVE), it is developed in the Northern area, Catalonia, Valencia, and other places. It is specialised in short distances. b. High Speed trains (AVE): It still being developed at the moment. b) Lines have important technical contrasts: some lack of modern materials or are not properly electrified or count just with a railway. All of them require to be modernised. 4
  5. 5. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo c) Traffic must be oriented to the transport of passengers and products: Passenger transport is profitable nowadays in peripheral areas and in the case of products this means of transport is appropriate for important weights of huge volume. d) There are regional differences in equipment and investment: the most important areas are those of big cities while there are regions with poor infrastructures due to the lack of investment. e) Guide Plan of Infrastructures wants to increase the traffic to close areas, improving the lines and increasing speed. f) Spanish railway net must be better integrated in the EU net: new trains will have the same weight of Europeans and huge investments are required in order to create profitable services.Sea transportsThe characteristics of transport by sea are: a) The net of ports is controlled by the State and the Autonomous Governments. States controls ports devoted to trade activities while smaller ones, mainly indicated for fishing or sportive are under the control of autonomous authorities. b) Passenger and trade traffic present huge differences: a. Passengers: it is scarce, being only important between Algeciras and Ceuta or in the islands. b. Traffic around the coast (cabotaje) is used for the transport of petroleum and its derivates because refineries are near the coast. c. International trade: it is the most important because imports and exports have been done using this transport: i. Tradition: for import and export raw materials for the industries or petroleum derivates ii. Nowadays: the most generalised are general products, at least those that can be transported in containers. It is practised in huge ships in order to reduce costs. 5
  6. 6. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo c) Technical improvements are needed in ports: surface and communication links need to be improved. d) Disequilibrium between regions as long as equipment and inversions are concerned: the biggest works are done just through a limited number of ports. e) Guide Plan for Infrastructures puts the conditions for the distribution of products and specialization. f) European Union prepared the Green Book of sea and ports and they try to avoid competition among ports.River transportsThe only port in a river is that of Seville in the Guadalquivir. This port has to face someproblems mainly that of the sand in the entrance. Sedimentation is closing some partsand the traffic is more and more limited. Its hinterland is important, in the whole valleyof the Guadalquivir and Extremadura.Air transportsIt has developed quickly because income has increased, economic space has changedits organization, the demand of tourism, jobs and businesses and international flightsare abundant. Its characteristics are: a) Airports’ net is quite developed since the 70s in which it was decided that every city of a certain size should count with one. The net is organised in and hierarchical way: Madrid hub has connexions with all the airports in Spain. b) Passengers and products’ traffic is very different: a. Air transport is competitive in long and medium distances because it is fast and comfortable b. Product traffic is scarce due to its high cost so that it is only used for deciduous or expensive products. c) There are regional differences: Cities such as Madrid, Barcelona, and Bilbao have international airports whereas there are a lot of small airports that are not profitable. 6
  7. 7. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo d) Guide Plan for Infrastructures aims at improving airports and the links of the cities with these places. e) European Union has liberalised the tariffs of air services so that some companies have become private, as the case of Iberia, in order to reform their finances.CommunicationsLong distance communications andtelecommunications are essential nowadays.Thanks to them information can be sharedquickly and this is very important in ourglobal world. In our society the location of acompany is not important because whatreally matters is to be well connected toinformation nets.In Spain telecommunications and mainly telephone net have improved even if it stillbeing delayed in comparison with other countries.Telephone flux is hierarchical with the highest concentration in big metropolis such asMadrid, Barcelona, Valencia, Seville and Biscay. The rest of the provinces are in asecondary position and there are regional sub-systems. 4. Tourism spacesThe term tourist was coined in Britain in the 18 th century to refer to a person who likedto travel due to cultural or spare time reasons. During the 19 th century this activity waselitist but nowadays it is a phenomenon generalised.Factors to develop tourism in SpainSince the 1960s Spain experienced a huge development of this sector and nowadays isone of the countries with a higher potential. The increase answered to internal andexternal factors: a) External factors were: a. Economic development in Europe after WW2 that increased the spending power of middle classes who started travelling abroad. In addition to this workers started having paid holidays. b. Development of transports that made easier movements and prices became lower. b) Internal factors were: a. Spain was near the European costumers b. Climate and landscape, mainly beaches, were attractive 7
  8. 8. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo c. It is cheap for foreign tourist, specially since the peseta devaluation in 1959 d. State gave advantages to the development of this activity because the money made with tourism equilibrated the payment scale. e. Hotel and important travel agencies have appeared.Nowadays those factors are not as important as before and others must be taken intoaccount: - strengthen of internal demand - quality of the offer that takes into account environmental measures - diversification of the touristy products offered - existence of human resources at hand - improvement of communications and infrastructures - promotion - in places that can compete with Spain there are political problems (Northern Africa, Balkans)Traditional touristy modelThe model created in the 60s has an important offer addressed to a great number ofcostumers who have medium or medium-low acquisitive power and who are lookingfor hotels of medium category in beaches or coastal places. In addition to this, it waslinked to the tour-operators and a big part of the expenses made by tourist escaped toforeign countries.Touristy offer Those selling the product are organizations or tour-operators and touristy installations (hotels, restaurants). Accommodation offer is wide and it is very developed along the Mediterranean coast and the islands, even if during the last years there is a trend to develop interior regions.Feeding offer is wide, including very different categories.Offer for free time activities is increasing with sport installations, parks, water-parks,equestrian clubs, golf clubs and nautical installations. 8
  9. 9. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite FresnilloTouristy demandAt the beginning foreign was the main one but nowadays there is an important one inthe interior too. a) International demand has increased since the 1950s, but the exception of the years of the crisis. The main demand comes from Europe: Germany, Britain, France, Netherlands, Italy and Portugal. They come normally in summer and they look for sun and beaches. b) State demand increased since the 1960s. It comes from the industrialised areas to others with lower population or the coast. c) Seasonality of the demand is one of the main problems because it tends to concentrate in summer time, with the exception of snow-tourism. As a consequence installations are over exploited during some months and almost completely left apart during others.Crisis of the traditional model and alternative tourismReasons for the crisisAlthough the number of tourist and the amount of money produce by tourism haveincreased, the traditional touristy model is in crisis because of the following reasons: a) A majority of the tourists is of medium or low-medium level b) Touristy offer has some problems such as the increase of prices without improving quality, the lack of accommodation to the new demand, to be seasonal and the geographical disequilibrium. c) Dependency towards international tour-operators d) Damage to the environment and changes in the landscape.Alternative tourism and new touristy policyTo answer to the problems the restructuring of the sector was needed and the basisfor that has been the policy of territorial organization. The objectives of touristy policyare: a) Promote tourism of quality b) Improve the offer, with new modalities a. Tourism for third age b. Sport tourism c. Agricultural tourism d. Eco-tourism e. Tourism linked to cities, culture, congresses and conventions c) Reduce the dependency of the exterior d) Unify touristy development and environmental quality 9
  10. 10. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite FresnilloTouristy space and typologyTouristy spaces are those that attract a lot of tourist. In Spain the highest density islinked to sun and beaches, this is Balearic Islands, Canary Islands, and Mediterraneancoast. Madrid is the centre of cultural tourism. After those are the North Westerncoast and the Northern coast.At the same level of that regions are some touristy points that are highly profitable, forinstance, areas with sky stations, rural tourism or historical cities.All those regions can be classified depending on the uses: - seasonal touristy regions - steady tourism4.4.1. Areas with sun and beachesThere are located in the islands or the Mediterranean region. They receive abundanttourism thanks to their climate; anyway, there are several differences: - Facilities for communication, essential for the arrival of tourists. - Ways of occupying the space: touristy installations are abundant - Kind of guesthouses, quality and costumers4.4.2. Other touristy areasSince 1990 tourism has developed in the space due to: - Close tourism has increased due to urban accumulation - Agricultural regions of the interior have developed strategies to attract tourism - Coastal spaces have been structured and also the area near them - Demand asks for quality and attractiveness. 10
  11. 11. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite FresnilloIn this way, apart from the tourism of coast other kinds of tourism have developed: - Madrid: being the capital its tourism is not seasonal and it is linked to its cultural offer. - Canary and Galician coasts and the interior have developed their natural spaces - Rural tourism is linked to agricultural activities - Sky stations are the basis for snow tourism - Historical and artistic cities: they can offer museums, and historical neighbourhoods.4.5. Influence of tourism in the spaceTourism has a great impact in territory. This impact is notorious on the coast but it alsoaffects other territories.4.5.1. Demographic influence - In coastal regions population increases, mainly with young populations looking for jobs. Other times people from other countries or other regions tend to move there. - In rural areas sometimes provokes the emptiness but for the cases of historical cities.4.5.2. Influence in populate - Coast: tourism supposed the creation of new population structures, such as conurbations in these regions. There is also a huge density of constructions. - Rural and urban areas tourism has been helpful to restore old areas.4.5.3. Economic consequences - Tourism creates jobs because it requires a lot of people. It supposes more than 9 per cent of active population but the problem is that a majority of the jobs are seasonal. - It has a multiplying effect in other activities - It supposes about the 12 per cent of the GDP - It equilibrates the payment balance and it is used to reduce exterior debt. - It has a great influence in transport policy.4.5.4. Influences in politics, culture and sociology - Thanks to tourism countries are closer and there are cultural links among them. This eases the relations between countries. 11
  12. 12. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo - It has an influence in the live of local populations, sometimes in a negative form because some traditions are lost.4.5.5. Influence in territorial organization a) In regions with well developed tourism, spaces around have been affected, in order to provide free time spaces: sports, services. a. Transformation of environment and landscape b. Economic transformations c. Problems to control the use of soil and resources b) There are concentrated in areas I which tourism is interested c) In rural areas tourism can create problems because they can influence in other activities.4.5.6. Environmental influenceThese are the reasons: - The sector has developed in a short period of time, in a limited space and when environmental measures were not defined. - Urbanization process was done without taking into account the damage to environment - Protection and recovery policies have been taken during recent years.5. Interior and exterior commerceCommerce is the activity that offers products and services to consumers. It can bepractised inside the State borders of out of them.5.1. Interior commerceIt has the following characteristics: a) Localization: they require communications to be close to producers, markets and costumers. Good transport’s net united to high density population with high acquisition power are essential for commerce. b) Structure: it has suffered important changes during the last years. Those changes have affected: a. Distribution channels (intermediaries have disappeared) b. Consumption: rents have increased and with them demand c. Distribution: selling in auto-service or great companies that reduce the number of workers and offer better prices d. Equipment: technology related to sales e. Payment ways c) Typology: The following systems can be found: 12
  13. 13. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo a. Wholesales commerce: they concentrate products and they send them to minor sellers. It has central location. b. Minor sales: they sell directly to the costumer and there are different varieties: i. Traditional commerce ii. Modern commerce 1. self-services 2. storehouses 3. regional commercial centres 4. hyper markets d) Commercial areas are the regions where people move to get the products they are looking for. e) Commercial policy: it has followed the Frame Law of 1995 to try to increase profitability of minor commerce by increasing qualification; increase innovations with new technologies and management; liberalizing timetables and others.5.2. Exterior commerceThis activity consists of exchanging products and services with any other area in theworld. Both, imports and exports have increased during the last years thanks to globalcommerce. a) Exports: products of primary sector have lost importance in benefit of half manufactured industrial products, equipment, cars and consumption items. In imports energy and some industrial products are the leading ones in addition to agricultural. b) Areas of exterior commerce have changed mainly after the entrance in the European Union. The EU is the main area for exports and imports of Spain, but the problem is that Spanish products are not of high productivity. c) Commercial policy has been influenced by the entrance in the only market and the agreements signed with the World Commerce Institution. The Spanish exports policy want to offer advantages thanks to a series of measures: a. Organization of fairs and shows to make their products known and trips to other countries to present innovations b. Give to companies information about foreign opportunities c. Credits for developing commercial nets in the exterior d. Funds for Development Aid have been created in cooperation with other countries to put into work commercial policies e. Aids to small companies to open to the international market. 13
  14. 14. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo6. Tertiary sector space in the Basque Country The process of the tertiary sector in the Basque Country has developed due to several factors, such as the existence of Autonomous Communities (Basque and Navarre) that have their own services, the per capita income and life quality are quite high and companies demand more and more services. In the Autonomous Community of Euskadi more than half the active population works in this sector. Three are the factorsthat have influenced in this situation since the 60s: - Crisis of the industries: a lot of workers passed to the tertiary sector - Entrance in the European Community, what implied to accommodate to the new policy - Autonomous processes that resulted in the development of public sector.Anyway, the importance of the service sector in the Basque Country is smaller than inSpain because in this Community industry continues having an important weight.6.1. Transport system and communicationsTransport infrastructure is important. However, there are differences depending onthe territories and it can lack of some functions. The links between the three capitals,rural nucleus and street nucleus are not good. In addition to this, some areas have adeficit of infrastructures or there are obsolete and need to be repaired.6.1.1. MotorwaysIn the Basque Country road, motorways anddouble line roads are improving constantly andtheir main characteristics are: - There are North-South and East-West nets: Madrid-Irun, Madrid-Bilbao and Bilbao-Behobia. There is also a link with the Ebro’s corridor uniting Basque Provinces with the Mediterranean coast. - Links between the three Basque capitals. - Local roads.The net and its functions are different depending on the territory and in order toreduce them the Plan of Motorways of the Basque Country was made with the aim ofimproving the links with the European net and between the three territories. 14
  15. 15. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo6.1.2. TrainsThe most important lines of long distances are: Madrid-Irun in the axis Madrid-Paris,Bilbao-Miranda, linking the Basque Provinces with the Meseta, and Vitoria-Pamplonaand Bayona, linking with Burdeos and Toulouse. Trains of narrow width are not veryappropriate but there are useful in short distances. In the case of Bilbao theunderground must be added, linking all the metropolitan area. There is also a projectof this kind for San Sebastian.The main objectives of the railroad communication are: - Improve the links with Spain and Europe - Improve the links and the speed between the three Basque capitals with high speed trains. This is the project known as the Basque Y. - Promote services in metropolitan areas to avoid traffic jambs. - Finish the second line of the Bilbao’s underground. - Adapt train stations to high speed trains, create more trains stations and prepare other more for products: an autonomous port in Bilbao, an interchange area in Guipuzcoa and an integrated transport hub in Alava. - Integrate train in cities and improve stations.6.1.3. PortsThe most important are Bilbao, Pasajes and Bayona. Through those ports there is agreat exchange of products with foreign countries. In addition to them there are othersmaller ports for transport, fishing or sport. - Bilbao’s port expands its hinterland to the whole Basque Community and other close areas. Its problem are the bad links with roads and trains what demands improvements: o Create a Multifunctional Station to bring products to the port by train o Logistic companies should be integrated in the port 15
  16. 16. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo o Create a free area to increase the size of sea transport, at least as long as lines with the US and Latin America are concerned. o Bring the port out from Bilbao to make urbanize the area. - Pasajes’ port is specialised in raw materials, iron and cars’ import and export. In the future they want to develop a industrial area and a sport port as well. There is a project for a port in the outside of the outlet that would take bigger ships, but its future is not assured because it is a controversial project. - Bayona’s port is one of the most important of France, specialised in chemist and fuels. - From the rest of the port Bermeo, Lekeitio, Ondarra, Motrico, Zumaya, Hendaya and San Juan de Luz should be mentioned.6.1.4. AirportsThey have limitations because of the mountains andthe climate that do not make easy their traffic. Themost important is Loiu in Bilbao, directly link to theactive economy of the region. Hondarribia is quitestable and Foronda in Vitoria is an infrastructure ofhigh quality. In Northern Basque Country Biarritz isimportant and in Navarre Noain.There are aims to create a Basque Airport System tobe more specialised.6.1.5. TelecommunicationsThere are essential in our global society. Basque Country is very developed in this field,mainly in the area of the technological park of Zamudio. The connexions with all theworld are made through the satellites Eutelsat, Intelsat and Hispasat.6.2. TourismIt started in the Basque Country in the 19th century when the high classes startedcoming to have baths. Some of them built in this region their residences, being themost important San Sebastian and Biarritz. Since 1830 the royal family started coming 16
  17. 17. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnilloto these cities. In addition to this, Zarauz and Lekeitio became touristy centres for thehigh bourgeoisie.6.2.1. Limits and benefits of Basque tourismAlthough it started early, Basque tourism is less developed than in other regions due tothe following reasons: - climate is not appropriate - touristy offer was faced with some difficulties such as lack of international promotion, intermediaries, limited hotel offer, lack of diversification of the product.About 60 per cent of the tourists come from the rest of the Spanish state, 29 per centare foreigners and 11 per cent are Basque. In general the massive movement happensin summer.Basque tourism has high potentialities: - geographical location - good communications - traditional tourism is exhausted and new models are being developedThe main resources are: - natural beauty of the coast - gastronomy - folklore - regional sport - craftsmanship - archaeology 17
  18. 18. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo - museums6.2.2. Tourism typesThanks to the resources, there are different kinds of tourism: - Coast tourism: in summer. The most important locations are Biarritz, San Sebastian and Zarauz, lacking the rest of the cities of enough hotel infrastructures - Ecotourism, rural tourism and sport tourism have experienced an important increase and new installations have been created. - Culture, congress, conventions and business tourism has increased.6.2.3. Touristy policyThe aims of this policy are: a) Increase the importance of the tourism, for that some activities are being promoted: a. Design promotion campaigns b. Improve offer by developing infrastructures and services b) Support sustainable development and equilibrium in touristy activity.6.3. Commerce6.3.1. Interior commerceDuring the last years unemployment has been reduced in this sector and familiar rentshave increased. a) Small commerce even if feeble has some advantages: a. There is quite high density of small shops what is favourable for their development. Their size is small and some of them do not count with 18
  19. 19. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo appropriate installations but there is scarce tradition in uniting shops what makes more difficult the introduction of innovations. Sometimes in the periphery of cities commercial areas are created and these tend to be more active. b. Their advantage is their location in city centres, they adapt to changes quite quickly, and their accessibility for costumers is essential. b) Wholesale commerce does not count with a well developed logistic distribution what is prejudicial c) Basque commercial policy has as objectives: a. Modernization b. Competitiveness c. Specialised workersIn addition to all this, urban commercial centres havebeen reinforced with new urbanization.Finally they want to modernise and divide to reducecosts and open to the nation what would be beneficial for the development of thesector.6.3.2. Exterior commerceExports suppose about a quarter of the GDPin the Basque Country. Their main costumeris the EU. The sectors that export more areequipment and metallurgy. The result ofinternational trade has been positive duringthe last years.Basque companies have very clear that toopen to the international market isessential and during the last years theyhave made great efforts. Anyway, the mainproblem is the small size of the companiesand the lack of planning. This is evident inexhibition centres such as in Bilbao (BEC). 19
  20. 20. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo appropriate installations but there is scarce tradition in uniting shops what makes more difficult the introduction of innovations. Sometimes in the periphery of cities commercial areas are created and these tend to be more active. b. Their advantage is their location in city centres, they adapt to changes quite quickly, and their accessibility for costumers is essential. b) Wholesale commerce does not count with a well developed logistic distribution what is prejudicial c) Basque commercial policy has as objectives: a. Modernization b. Competitiveness c. Specialised workersIn addition to all this, urban commercial centres havebeen reinforced with new urbanization.Finally they want to modernise and divide to reducecosts and open to the nation what would be beneficial for the development of thesector.6.3.2. Exterior commerceExports suppose about a quarter of the GDPin the Basque Country. Their main costumeris the EU. The sectors that export more areequipment and metallurgy. The result ofinternational trade has been positive duringthe last years.Basque companies have very clear that toopen to the international market isessential and during the last years theyhave made great efforts. Anyway, the mainproblem is the small size of the companiesand the lack of planning. This is evident inexhibition centres such as in Bilbao (BEC). 19
  21. 21. GEOGRAPHY AND HISTORY DEPARTMENT Teacher: Maite Fresnillo appropriate installations but there is scarce tradition in uniting shops what makes more difficult the introduction of innovations. Sometimes in the periphery of cities commercial areas are created and these tend to be more active. b. Their advantage is their location in city centres, they adapt to changes quite quickly, and their accessibility for costumers is essential. b) Wholesale commerce does not count with a well developed logistic distribution what is prejudicial c) Basque commercial policy has as objectives: a. Modernization b. Competitiveness c. Specialised workersIn addition to all this, urban commercial centres havebeen reinforced with new urbanization.Finally they want to modernise and divide to reducecosts and open to the nation what would be beneficial for the development of thesector.6.3.2. Exterior commerceExports suppose about a quarter of the GDPin the Basque Country. Their main costumeris the EU. The sectors that export more areequipment and metallurgy. The result ofinternational trade has been positive duringthe last years.Basque companies have very clear that toopen to the international market isessential and during the last years theyhave made great efforts. Anyway, the mainproblem is the small size of the companiesand the lack of planning. This is evident inexhibition centres such as in Bilbao (BEC). 19

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