CONTRIBUTION OF SERVICE INDUSTRY TO WORLD ECONOMY
WORLD SCENARIO
- as economy shifts from developing to developed stage, they will show more and more shift toward services
- today, the fastest growing segments of the US economy is services
- in 1948 54% of the GDP of US was generated by services which is 80% now
- employment in this sector which was 55% in 1950 is now 83%
- the US balance of trade in goods has remained in the red for many years, but there has been a trade surplus in services
- today service sector dominates the economics of many developed nations. As countries develop the role of agriculture in the economy declines and that of services increase.(china has 50% GDP from service, 35% from industry, and 15%from agriculture)
- during recession it has been seen that service output declines less than industrial output – the service employment is less sensitive to business cycle fluctuation
- globalisation as strategy for service firm is becoming more important
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