Tuesday,

Services Industry

 

What is Services Industry ?

 

 

SERVICE is one of the fields of industry that forms an important part of the economy. This segment is concerned with the production of services rather than tangible goods. Economists divided economic activities into two categories: Goods and Services.

 

Service sector is the third Column of the Three-Columns of economy. The Primary sector, covers Farming, Mining, and Agricultural Business activities in the economy. The secondary sector covers Manufacturing and business activities that facilitate the production of tangible goods from the raw materials produced by the primary sector. The service sector produces intangible goods (Services), and is responsible for the largest portion of the global economy’s business activity.

 

 

The proportion of services in the global economy experienced rapid growth during the twentieth century. In the early twenty-first century, the service industry represented more than three fifths of the global GDP, and this field employed over a third of the workforce worldwide.

 

The simplest explanation for the growth of the service industry is that commodity production tends to use mechanical machinery rather than manual work, because mechanical machinery achieves an increase in production, which leads to an increased importance of service functions such as distribution and sales.

 

 

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