The Role of Transport Services in Economic Development

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Transportation is crucial for the functioning of various industries, such as tourism, by providing access to markets, labor, and resources. Air and sea transport play significant roles in linking local businesses to international markets, fostering economic growth and job creation. The transport sector acts as a catalyst for economic development, enabling businesses to operate globally and facilitating international trade.


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  1. SUBJECT: L4 TRANSPORT OPERATIONS TOPIC: IMPORTANCE, FUNCTION AND THE ROLE OF TRANSPORT SERVICES IN THE ECONOMY.

  2. OUTCOMES (SO 2.1 LO 2.1.1) 1. Role and the function of transport services with specific reference to other industries. 2. General impacts of transport on other industries. 3. Relation between transport and international competition. 4. South Africa's access to international economic markets created by air transport. 5. South Africa's access to international economic markets created by sea transport.

  3. ACTIVITY 2.1 QUESTIONS. Discuss the role and the function of transport services with specific reference to one other industry. 1. 2. Discuss three of the most important general impacts of transport on other industries 3. Discuss the relation between transport and international market competition 4. Discuss South Africa's access to international economic markets created by air transport 5. Discuss South Africa's access to international economic markets created by sea transport.

  4. ANSWERS. 1. Tourism industry is an industry that starts and ends with transport, this means that there is no tourism without transport. Tourism industry is created more than 2.5 million jobs in Africa which amounts to 34% of the jobs created in Africa. These jobs are sustained by tourists who come to Africa for pleasure trips. Transport provides access to local and international markets and avail labour force for industries. Transport optimise seamless supply chains of production, distribution and consumption. Improved transport system connects South African markets to international markets which creates jobs and promote international trading through by the shipments of exports and Imports. Air transport is opened international markets for local consumers and businesses, air transport has high speed access for businesses and individuals. Sea transport has become the preferred mode of transport for large volumes of goods without time pressure. It has opened up and created access for businesses and goods to international markets. 2. 3. 4. 5.

  5. SUMMARY OF THE LESSON Transport as a catalyst for economic development enables businesses such as tourism industry to exist. This industry solemnly relies on the integrated transport systems of the transport sector to provide its services as well as to sustain its business. Sea and Air transport has created access for local business and individuals to international markets which promotes marketing of local and foreign goods and services that yield positive spin-offs for macro economic and socio-economic objectives of the government. International trade as made possible by the transport sector creates job opportunities and widen markets for businesses to operate in different countries.

  6. -LEVEL 4 BY MAZIBUKO B.E

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