service economy

(noun)

Service economy refers to the increased importance of the service sector compared to the manufacturing sector. The service economy in developing countries is mostly concentrated in financial services, hospitality, retail, health, human services, information technology, and education.

Related Terms

  • Information Age
  • the internet

Examples of service economy in the following topics:

  • The Dynamics of Poverty

    • Sociologists have argued that the economic restructuring of the U.S. and other developed nations from manufacturing to service-based economies has led to chronic joblessness in inner cities.
    • In a service economy, there is a higher proportion of high-skill jobs than in a manufacturing economy.
    • Thus, people who have lost their manufacturing positions are unqualified for the jobs available in the new economy.
    • People who are homeless or live in slums have low access to neighborhood resources, high status social contacts, or basic services such as a phone line.
  • The Economy

    • Economies can be divided into formal economies and informal economies.
    • A formal economy is the legal economy of a nation-state, as measured by a government's gross national product (GNP), or the market value of all products and services produced by a country's companies in a given year.
    • A market is a central space of exchange through which people are able to buy and sell goods and services.
    • In a capitalist economy, the prices of goods and services is mainly controlled through the principles of supply and demand and competition.
    • "Supply and demand" refers to the balancing of the amount of a good or service produced and the amount available for sale .
  • Work and Technology

    • Examples of service sector jobs are jobs in the medical services sectors, teachers, lawyers, and sales representatives.
    • Examples of service sector jobs are jobs in the medical services sectors, teachers, lawyers, and sales representatives.
    • Automation plays an increasingly important role in the world economy and in daily experience.
    • In general, automation has been responsible for the shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries.
    • The service sector consists of the "soft" parts of the economy—activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability.
  • History

    • Economy refers to the ways people use their environment to meet their material needs.
    • It includes the production, exchange, distribution, and consumption of goods and services of that area.
    • As long as someone has been making and distributing goods or services, there has been some sort of economy; economies grew larger as societies grew and became more complex.
    • The ancient economy was mainly based on subsistence farming.
    • In Medieval times, what we now call economy was not far from the subsistence level.
  • Informal Economy

    • This is in contrast to the formal economy; a formal economy includes economic activity that is legal according to national law.
    • Formal economy goods may be taxed and are included in the calculation of a government's gross national product (GNP), which is the market value of all products and services produced by a country's companies in a given year.
    • All economies have informal elements.
    • This video describes how the informal economy fails to provide some of the same social benefits as work in the formal economy.
    • Analyze the impact of the informal economy on formal economy, such as the black market or working "under the table"
  • Multinational Corporations

    • A multinational corporation (MNC) is a business enterprise that manages production or delivers services in more than one country.
    • A multinational corporation (MNC) or multinational enterprise (MNE) is a corporate enterprise that manages production or delivers services in more than one country.
    • Multinational corporations can have a powerful influence in local economies, and even the world economy.
    • These patents often allow multinational corporations to exercise a monopoly in the local economy, preventing local enterprises from developing.
    • Multinational corporations play an important role in the world economy through the process of economic globalization; in other words, the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, services, technology and capital.
  • Preindustrial Societies: The Birth of Inequality

    • Pre-industrial typically have predominantly agricultural economies and limited production, division of labor, and class variation.
    • The economy was based mostly on agricultural production.
    • The economy was based on the exchange of labor for land instead of the exchange of wages for labor that is typical in industrial society.
    • Feudal lords were landowners; in exchange for access to land for living and farming, serfs offered lords their service or labor.
    • Discuss the different types of societies and economies that existed during the pre-Industrial age
  • Capitalism in a Global Economy

    • The term "world economy" refers to the economic situation of all of the world's countries.
    • It is common to limit discussion of world economy exclusively to human economic activity.
    • World economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult.
    • Today, these trends have bolstered the argument that capitalism should now be viewed as a true world system, given that all national economies trade with capitalist states and are therefore influenced by capitalist policies.
    • It is generally used to refer to economic globalization: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas; and the reduction of restrictions on the movement of capital and on investment.
  • The Importance of Paid and Unpaid Work

    • Although we usually think of work as paid, unpaid work is equally important to the economy.
    • An hourly worker is an employee paid an hourly wage for their services, as opposed to a fixed salary.
    • Hourly workers may often be found in service and manufacturing occupations, but are common across a variety of fields.
    • Generally, the internship is an exchange of services for experience between the student and his or her employer.
    • Though unpaid, this domestic work is crucial to the economy: it keeps workers alive and healthy and helps raise new generations of workers to keep the paid economy running.
  • Least Industrialized Countries

    • Samoa has been characterized as a least developed country by the UN because of its small economy and the vulnerability of its agricultural industry.
    • While LDCs can expand their economies and improve standards of living, they are vulnerable to economic setbacks and often require international support.
    • Economic vulnerability, based on instability of agricultural production, instability of exports of goods and services, and a high percentage of population displaced by natural disaster, for example.
    • The UN uses such specific standards for defining LDCs because the UN provides support and advocacy services to LDCs.
    • They participate in the world economy, but do not greatly benefit from it.
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