Service Industry (1): Overview Flashcards
What does the service industry offer? Examples?
Intangibles like advice and attention.
Ex: Education, healthcare, tourism, finance
How much of employment and GDP does service make up?
50% of employment, 67% of global GDP
When did deindustrialization take place? What helped it?
50s-70s. Technology allowed mass production which made manufacturing require fewer people
How did Detroit lose its auto jobs?
In 70s/80s, they didn’t pay attention to Japanese automation enough and saw losses in the 40s.
What was Pittsburgh producing most in 1910s? Which was the biggest company in the world?
60% of US’s steel. US Steel Corporation.
What happened in Pittsburgh between the 80s and 90s?
75% of steel making capacity was gone, 1,000 manufacturing jobs and half of population gone.
When steel jobs left Pittsburgh, what took its place and why?
Young people leaving left aging population that needed healthcare (service) in 80s/90s.
What are the three global cities of the 80s?
NY, London, Tokyo.
What decisions did the global cities make?
MNE decisions with executives.
