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Chap #1             Service Economy  •   Definition:   “In a service economy a large proportion of the working population ...
Factors Influencing Service Economy                    (Specifically UK)   1)     Services And Employment   2)     Servic...
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Chapter 1

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Chapter 1

  1. 1. Chap #1 Service Economy • Definition: “In a service economy a large proportion of the working population isemployed not in agriculture and manufacturing but in service jobs. In serviceeconomies too a large proportion of output is provided by the service sector.”Types of services offered by any economy:Travel Communication Insurance HotelPostal Catering Recreational services etc etc. • Historical Background of service economy: Till second world war most of the developed economies (Like UK,USA,Australia,Germany) were considered as the service oriented economies.  Fuchs Wrote in 1968: The United States has become the world’s first Service Economy during the period followed by World War II, first nation in which half of the population is involved in intangible services other than food automobiles ,houses ,cloth etc  Smith narrated in 1972:To measure and interpret service output we should identify weaknesses in the statistical treatment of services.  Heilbroner: The growth of services increases the possibility of Govt interference in the market mechanism towards a planned economic system on order to maintain essential services.  Gersuny &Rosengren:Sociologists are against the process of maintaing and developing services economy as it might disturbs marketors to discourage investments. 1
  2. 2. Factors Influencing Service Economy (Specifically UK) 1) Services And Employment 2) Services And Output 3) Services And Consumption 4) Services And balance of payments Services And Employment : Economic Activities are divided into three classes: 1. Primary: (Agriculture, forestry fishing) 2. Secondary: (Manufacturing & Construction Industries) 3. Tertiary: (Services & Distributive Trades) An international Comparison: Civilian employment of economic sector of UK shows high employment in INDUSTRY 2
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