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Academic Skills

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Submitted By lodgehbk
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Service sector is that part of the economy, which produces intangible goods. Intangible goods may include transportation services, telecommunication sector, information sector, professional services, technical services and healthcare. Banking services in an economy are also considered to be intangible, and thus, banks are included in the service sector. The employees of service sector produce services as oppose to goods. Such services may include house cleaning jobs, preparation of taxes, tour guides, nursing, psychotherapy and teaching (McManus, 2009).

Importance of service sector, with respect to three writers

Service sector plays an important role in the development and growth of an economy. This is the reason many writers have emphasized organizations to develop their service offerings. Organizations can develop their service offerings by producing and distributing their products or services. Organizations can also invest in advertising to market their products and services more effectively. Services play an important role in the economic growth of regional and national economies. Organizations need to have a backward and forward linkage with their products, to decrease their costs, enter in the service sector and to account for the complete role of the service industry (Kay, Pratt & Warner, 2007).

Decades ago, agriculture industry used to be the only industry which contributed to the GDP growth of an economy. Now, times have changed. Service sector is equally important like manufacturing sector of a country. Service sector creates more jobs than the manufacturing industry, because agriculture lands are limited, therefore, the number of employee employed would be limited too. The current GDP contribution of agriculture in United States of America is only two percent, which shows how much the service sector's importance has increased. Some of the

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