Service economy

Service economy can refer to one or both of two recent economic developments:

The old dichotomy between product and service has been replaced by the [1]. many products are being transformed into services.

For example, IBM treats its multiple as a service business. Although it still manufactures computers, it sees the physical goods as a small element of the "business solutions" industry. They realize found that the price elasticity of demand for "business solutions" is much less than for hardware. There has been a corresponding shift to a subscription pricing model. Rather than receiving a single payment for a unit of manufactured equipment, numerous manufacturers are now receiving astream of revenue for ongoing contracts.

Full form up accounting and nearly accounting reform & monetary reform measures are ordinarily thought to be impossible towithout a good framework of the service economy.

Since the 1950s, the global economy has undergone a structural transformation. For this change, the American economist Victor R. Fuchs called it “the service economy” in 1968. He believes that the United States has taken the lead in entering the service economy and society in the Western countries. The declaration heralded the arrival of a service economy that began in the United States on a global scale. With the rapid development of information technology, the service economy has also provided new development trends.

Role of the service economy in development

Services exist over 50% of GDP in low income countries and as their economies stay on to develop, the importance of services in the economy continues to grow. The service economy is also key to growth, for exemplification it accounted for 47% of economic growth in sub-Saharan Africa over the period 2000–2005 industry contributed 37% and agriculture 16% in the same period. This means that recent economic growth in Africa relies as much on services as on natural resources or textiles, despite many of those countries benefiting from trade preferences in primary and secondary goods. As a result, employment is also adjusting to the recast and people are leaving the agricultural sector to find work in the service economy. This job develop is especially useful as often it allows employment for low skilled labour in the tourism and retail sectors, thus benefiting the poor in particular and representing an overall net put in employment. The service economy in developing countries is near often offered up of the following:

The export potential of many of these products is already living understood, e.g. in tourism, financial services and transport, however, new opportunities are arising in other sectors, such as the health sector. For example: