Growth of the Operation Services Industry Essay

474 WordsOct 21, 20132 Pages
Services industry is one of the areas of the industry , which forms a part of the economy, interested in the production of services rather than tangible goods. Economists divide the economic activites into two parts which are goods and services. Goods industry include agricultural products, mining, manufacturing and construction industries. Services industry include everything else such as banking and telecommunications, wholesale and retail, and all civil services such as engineering, computer programming, medicine, and non-profit economic activities as customer service, and government services which include defense and the administration of justice. Witnessing the proportion of services in the global economy developed rapidly during the twentieth century . For example, the services sector accounted for in the United States more than half of GDP in 1929, and two-thirds in the year 1978, and more than three-quarters in 1993. In the early twenty-first century, the service industry accounted for more than three-fifths of the world's GDP, and employs this field more than a third of the workforce in all parts of the world. The simplest explanation for the growth of the service industry, is that the production of goods heading to the use of mechanical machines instead of manual work. Because mechanical machines achieve an increase in production therefore there is an increase in functional services such as finance and sales. These groups are either classifed companies within the intermediary companies that work to facilitate transactions between the client and other companies, or either that is calisifed within the services-producing companies . For example, the stock market is classified within the financial services and is an intermediary between the buyer and seller to facilitate the transaction. In contrast, companies are provided to

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