Tertiary Industry

AAA

DEFINITION of 'Tertiary Industry'

The segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants.

Also known as "tertiary sector of industry," or "service industry/sector".

INVESTOPEDIA EXPLAINS 'Tertiary Industry'

The tertiary industry is one of three industry types in a developed economy, the other two being the primary (raw materials) and secondary (goods production) industries. As an economy becomes more developed, it will shift its focus from primary to secondary and tertiary industries.

The tertiary industry is split into two main categories. The first is made up of companies that are in the business of making money, such as those in the financial industry. The second comprises the non-profit segment, wich includes services such as state education.

RELATED TERMS
  1. Economy

    The large set of inter-related economic production and consumption ...
  2. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  3. Industry

    A classification that refers to a group of companies that are ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Sector

    1. An area of the economy in which businesses share the same ...
  6. Lion economies

    A nickname given to Africa's growing economies.
Related Articles
  1. What's the difference between old- and ...
    Investing

    What's the difference between old- and ...

  2. Industry Handbook
    Investing Basics

    Industry Handbook

  3. 10 Common Financial Terms Every Newbie ...
    Investing Basics

    10 Common Financial Terms Every Newbie ...

  4. Top Ranking Nations By HNWI
    Personal Finance

    Top Ranking Nations By HNWI

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center