Week 12 Flashcards
What is the service economy?
The service economy includes activities like fast food, heart surgery, consulting, education, healthcare, and finance. It provides intangible things such as advice, experience, and attention.
What percentage of global employment and GDP does the service sector represent?
accounts for 50% of global employment and 67% of global GDP
How has employment shifted in Canada from agriculture to services?
in 1867, 50% of Canadians worked in agriculture; by 1987, it dropped to 4%. By 1987, two-thirds of workers were in services, reversing earlier trends.
What historical example shows how services became increasingly important in global trade?
David Ricardo’s example of trading wine and cloth highlights how technological advances made service trade more prominent over time.
How did industrialization and urbanization affect the service sector?
Urbanization created demand for services like education and entertainment as more people moved to cities.
What was one of the causes for Detroit’s population decline?
Deindustrialization and competition from Japanese automakers in the 70s and 80s led to job losses in the U.S. auto industry.
What economic shift occurred in Pittsburgh?
Pittsburgh transitioned from steel production to healthcare, which became the largest employer by 1980 and grew as large as steel had been at its peak by 2010.
In recent decades, Pittsburgh has grown its population for its service industries including…
education, healthcare, and finance
What were the global cities in the 1980s?
new york, london, tokyo
Why are global cities like New York, London, and Tokyo particularly influential in service-dominated economies?
they centralize decision-making for multinational corporations
U.S has the largest service sector in the world, and is accountable for what % of the total global output of the sector?
30%
What are the “Five I’s” of services?
Intangibility: Services can’t be transported or involve physical goods.
Inseparability: Services are produced and consumed simultaneously.
Inventory: Services can’t be stored for future use.
Inconsistency: Each service is unique.
Involvement: Both providers and consumers participate in the process.
What is the environmental impact of the service industry?
impacts include pollution from tourism and transportation which is responsible for over 14% of global greenhouse gas emissions.
Which industry is one of the dirtiest sectors in the service economy?
the cruise industry
In this week’s reading, which industry was used as an example of how the service industry can still be environmentally detrimental despite its intangibility?
the cruise industry
Why is the cruise industry considered one of the dirtiest sectors?
Large cruises produce vast amounts of waste and pollution, including:
200,000 gallons of sewage and 1 million gallons of greywater weekly.
Emissions equivalent to 350,000 cars.
What are the global consequences of the cruise industry’s pollution?
84,000 annual deaths from shipping-related air pollution.
100 million gallons of petroleum dumped into oceans yearly.
What is the Quaternary sector?
Knowledge-based services like IT, R&D, education, and finance.
What is the Quinary sector?
Top-level decision-making roles like CEOs and government officials, often called “gold-collar” professionals.
What is offshoring?
“The location of productive facilities outside a firm’s home market, for the purpose of making goods to be sold in that home market.”
What is outsourcing?
Outsourcing is when a company purchases goods or services from a independent supplier that could have been precured domestically
What is the main difference between offshoring and outsourcing?
Offshoring establishes a company’s own facilities abroad, while outsourcing relies on independent suppliers.
What is one key difference between offshoring and outsourcing?
Offshoring maintains corporate control, while outsourcing involves external suppliers.
What was one of the major reasons for deindustrialization in economies like Pittsburgh in the 1970s and 1980s?
technological advancements in manufacturing
