Question

Explain with examples the significance of the service sector in the modern economic development of the world.

Answer 1

Services occur at many different levels. Some are geared to industry, some to people; and some to both industry and people, e.g. the transport systems. Low-order services, such as grocery, shops, and laundries, are more common and widespread than high-order services or more specialized ones like those of accountants, consultants, and physicians. Services *are provided to individual consumers who can afford to pay for them. For example, the gardener, the launderers and the barber do primarily physical labour. Teachers, lawyers, physicians, musicians, and others perform mental labour.

The service sector is well developed in regions where it is highly technological and educational know how. There is an increase in international trade of services. Services once generated can be easily availed by many and provide high monetary value in terms of wages, service charges, etc. As a country develops, more and more people shift to tertiary activities and the share of tertiary activities in the GDP is even faster. The service sector provides the most lump sum amount of foreign exchange and income for the country. Therefore service sector is a major contributor to modern economic development.