1. TO THE GROWTH OF SERVICES
NATIONAL & GLOBAL
STIMULI
TO THE GROWTH OF SERVICES
GROUP:
Nguyen Dang Hoai Anh - Ong Thi Phuong Anh
Le Nguyen Hoang - Vo Thanh Huy
Nguyen Ho Thanh Truc

2. OUTLINE
The growth of services
6 stimuli
Q&A

3. THE GROWTH OF SERVICES List of countries by service output in 2009
Country
Output (mil $) —
 EUROPEAN UNION
11,973,605 1
 UNITED STATES
10,963,075 2
 JAPAN
3,877,065 3
 GERMANY
2,424,032 4
 FRANCE
2,111,325 5
 CHINA
2,091,226 6
 UNITED KINGDOM
1,637,705 7
 ITALY
1,548,451 8
 BRAZIL
1,078,217 9
 SPAIN
1,024,828 10
 CANADA
952,872

4. National & Global Stimuli
Bryon, Daniels and Warf suggest 6 main forces that are driving the growth of services:
Rising per capita income
Growing demand for healthcare & education services
Increasingly complex division of labor
Growing size & role of the public sector
Increasing international trade in services
Rapid growth in outsourcing service functions

5. 1.Rising per Capita Income
GDP (nominal) per capita from IMF (2010)
Rank
Country
US Dollars 1
 LUXEMBOURG
108,832 2
 NORWAY
84,444 3
 QATAR
76,168 4
 SWITZERLAND
67,246 5
 UNITED ARAB EMIRATES
59,717 6
 DENMARK
56,147 7
 AUSTRALIA
55,590 8
 SWEDEN
48,875 9
 UNITED STATES
47,284 10
 NETHERLANDS
47,172

6. Increase in service employment Increase in demand for services
Everyday tasks
Tourism (transportation, hotels & entertainment)
Increase in service employment
Increase in demand for services

7. 2. Growing Demand for Healthcare & Educational Services
1950
2000
2050
World
5.2%
6.9%
19.3%
Africa
3.2%
3.3%
China
4.5%
22.7%
India
5.0%
14.8%
Japan
4.9%
17.2%
36.4%
Europe
8.2%
14.7%
29.2%
Italy
8.3%
18.1%
35.9%
Germany
9.7%
16.4%
31.0%
Sweden
10.3%
17.4%
30.4%
U.S.A.
12.3%
21.1%
Rising the demand for healthcare on the part of middles- aged and elderly people: observed & forecasted percentages of the elderly (65+ yrs).

8. Greater demand for educational services resulted from the changing labor market, the need for advanced skills and so on.

9. 3. Increasingly Complex Division of Labor
Companies depend on a variety of services, including accountancy, R&D, marketing & advertising, and public relations.
High-tech equipment requires skilled maintenance, repair and security services.

10. 4. Growing size and role of public sector
1st reason: public sector employees is increasing though there has been a privatization from the public sector (the state or government) to the private sector (businesses that operate for a private profit) or to private non-profit organizations

13. 2nd reason: The enactment of new laws and regulations
More and more needs for legal and experts to assist companies to negotiate in the complex legal environment.

14. For instance:
The Consumer Product Safety Improvement Act of 2008 is a United States law signed on August 14, 2008 by President George W. Bush
2. PwC’s Law Firm Services (LFS) is a practice made up of professionals dedicated to adding value in the areas of audit, tax, and advisory services to law firms and their partners throughout the world.
*** More rules => the need for lawful service will enhance

15. 5. Increasing international trade in services

16. 6. Rapid growth in outsourcing service functions:
Rapid growth in outsourcing services from core to semi – peripheral countries by both large and small companies has led to the growth in services
Ex: India (a semi – peripheral country)

17. India business process outsourcing by service lines

20. Thank you for listening!

21. CITATIONS http://www.bls.gov/opub/cwc/cm20090416a r01p1.htm
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