Question

Explain the importance of the service sector in the economic development of a country by giving three suitable examples from the parts of the world. 

Answer 1

The tertiary or service sector is more developed in developed countries. It includes both production and exchange. The service sector is gaining importance all around the world. The employment in this sector is increasing steadily.

• The rising aged population in Japan and North America has led to the increase in employment and development of medical services.
• New York, Tokyo, and London together cover the world for the purpose of financial trading.
• In developing countries like India, the service sector is growing faster than the manufacturing sector.