NATIONAL & GLOBAL STIMULI

GROUP: Nguyen Dang Hoai Anh - Ong Thi Phuong Anh Le Nguyen Hoang - Vo Thanh HuyNguyen Ho Thanh Truc

The growth of services 6 stimuli Q&A

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

Bryon, Daniels and Warf suggest 6 main forces that are driving the growth of services:

1. Rising per capita income2. Growing demand for healthcare & education

services3. Increasingly complex division of labor4. Growing size & role of the public sector5. Increasing international trade in services6. Rapid growth in outsourcing service functions

GDP (nominal) per capita from IMF (2010)

Rank CountryUS 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

Increase in service employment Increase in demand for services

Everyday tasks Tourism

(transportation, hotels & entertainment)

Rising the demand for healthcare on the part of middles-aged

and elderly people: observed & forecasted

percentages of the elderly (65+ yrs).

1950 2000 2050World 5.2% 6.9% 19.3%

Africa 3.2% 3.3% 6.9%

China 4.5% 6.9% 22.7%

India 3.3% 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. 8.3% 12.3% 21.1%

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

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.

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

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.

For instance:

1.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

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)

India business process outsourcing by service lines

http://www.bls.gov/opub/cwc/cm20090416ar01p1.htm

http://www.census.gov/indicator/www/ustrade.html

http://www.stats.gov.cn/english/