When new services are built, more jobs can be made and this will increase the employment in an economy and more people will be working and earning income. This could be another reason to build the services in an economy. 2 2 3. 0 Sectors impacted by market forces Market forces can be defined as the forces that decide the price changes in a trading system or in an economy which are not influenced by the government. The three sectors impacted by markets forces are public, private and social sector. 3. 1 Distribution services A distribution services facilitate goods from producers to consumers and it is very important for an economy.
A whole new range of regulations such as limits on large stores, opening hours and zoning have slowed the structural change in this sector. These restrictions have limited the services provided to the consumers and slowed the structural change. McManus (2009) 3. 2 Financial Services Regulatory reform in financial services has increased the productivity levels and has cause to lower the prices. It has also helped to increase improvements in the quality of services and flexibility. The allocation of resources has been successful in the economy which means that the services are provided where consumers need it the most.
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McManus (2009) 3. 3 Professional business services 3 3 This sector has been affected by market forces through commercial aspects which have caused prices to be lower and new services are appeared due to the consumer demand. It also maintains quality, performances and consumer protection through licensing and other controls. McManus (2009) 4. 0 Future challenges to the services economy 4. 1 Increase in demand Increase in demand for the well-educated and trained service personnel is a future challenge to the economy.
When new services are introduced and built they have to be operated by employees who are qualified to provide certain services so the departments need to train staff in order for them to be qualified. McManus (2009) 4. 2 cost pressures and management processing. This is related to the financial sector is services. A certain cost is involved to provide a service to the economy and to also manage that service so there is a future benefit to the society; this is another challenge for the future of the service because if it’s not managed accordingly maybe then the service won’t be efficient to the economy. Nisan et al. 2011) 4. 3 Managers need to improve in their skills.
4 4 The future of services depends on how the managers manage the services in the present in an economy. If the managers have poor skills in controlling and managing, this will lead to decreasing in demand for the service in the long run and this might affect consumers negatively in their living standards. Nisan et al. (2011) 5. 0 Recommendation 5. 1 After considering the research provided in this report, it is recommended that the main reason to build a service economy should be because services increase the living standards of people and it also develops the economy specially financially which helps to increase economic growth in the long run and short term. Majority of people in a country also work in service businesses and they span all the industry sectors providing consumers a higher share of services in a whole economy. Building and introducing services also
