Growth Factors For Services Sector Assessment Answer
Key Topics
- Introduction
- Essay
- Value of the services to the Australian and the whole economy.
- Growth factors for services sector industries in Australia
- • Deregulation
Write essay discussing the topic what factors will impact this growth over the next 5 years and why are services so important to world economies ?. Also please focus on factors that have led to the growth in demand for services in developed nations such as Australia.
Introduction
In this assignment major factor which leads to increase the demand for the service in a developed nation such as Australia and what are the factors that impact the growth over the next five years has been mentioned. Importance of the services to the global level has also been detailed in this assignment.
Essay
In order to complete this assignment the major difference between goods and services has been highlighted. The major difference between goods and services are goods is always present in a physical form that is it is tangible. Whereas services are always intangible. Services required less cost of inventory management whereas goods required a high cost of inventory management. Goods have the result of the manufacturing process which gives an output which has physical dimensions. Whereas services don't have a physical dimension.
Goods can be produced and can be stored for the longer period of time. Whereas services are created as per the customer needs and it cannot be stored. Although many services industry is storing their services such as a hospital, hotel and so on. In hospital medicine and other medical equipment are stored in a way to provide the services to the patient. But the cost of inventory management is less than the cost of inventory management of the physical goods (Tomczak et al., 2018).
Services cannot be weighed or measured whereas good is a tangible output of a process that has physical dimensions. Involvement of customer in regards to services is more than the involvement of customer in regards to goods (Rispoli et al., 2017).
Value of the services to the Australian and the whole economy.
Value of the services in almost all the developed nation such as Australia is very important. As it creates the maximum number of the employment in the country and also worldwide.
According to the ABS (Australian Bureau of Statistics) identified that the growth of Australian economy is due to the increase in the service sector. Services sector contribute a lot to the global economy as it uses to generate maximum employment opportunity. From ABS (Australian Bureau of Statistics) report it was found that services sector has resulted to increase the GDP level of the Australian Economy (Francois et al., 2015).
A standard of living of the people increases by the three times when compared with the 1980s. Which is clearly indicating that manufacturing sectors are been replaced by the services sector industries.
Values of the service sector to the Australian and economy in nutshell are
• Services sector industries yield more employment in the economy which results in increasing the personal disposable income of the people. Resulting in more saving with banks or spending in other investment which ultimately put a positive impact on the whole economic development.
• Services sector industries contribute maximum in GDP growth.
• Services sector industries dominate the workforce and also provide the above-average earnings as compared to manufacturing or goods based industries.
• A more new job opportunity has been created by the services sector industries in Australia. It can be shown by the below diagram.
