Explaining the Impacts of Globalisation on Service Economies in the Uk
Explain the impacts of globalisation on service economies in the UK
In explaining the impacts that globalisation has had upon service economies in the UK, the concepts, 'globalisation ' and 'service economy ' must first be defined. MacKinnon & Cumbers (2011) defined globalisation as "… the increased connections … in flows of goods, services, money, information and people across national and continental borders.". The globalisation process may be decomposed into constituent processes in order to explain the impacts it has had, which will be discussed more later.
In turn, a service economy is one, or part of one, that is based on trade in services. A service is characterised by its intangibility, inseparability (the simultaneous production and consumption of services), heterogeneity and perishability over time and space (Regan 1963; Rathmell 1966; Shostack 1977; Zeithaml et al 1985, cited in Wolak 1998). Alternatively, services are economic activities which have no direct involvement with agriculture, mining, or manufacturing (OECD 2000).
Both macro and meso-scale impacts will be examined, starting with the macro; how the service sector as a whole has changed and how globalisation may have fundamentally changed the concept of what a service might be. Inequality as a result of globalisation will then be discussed with particular reference to the North-South divide, before examining market structure changes in terms of levels of competition in the service sector. Finally, meso-scale impacts will be considered, emphasising wage differences in the UK 's service sector.
Figure [ 1 ]: Percentage share of employment in the UK by sector, 1980-2008
Source: ONS 2009, cited in Faulconbridge 2010
The most profound impact has been the expansion of the service sector since the onset of globalisation in the mid-20th century. Figure 1 shows the increase in service employment from 1980 - 2008. Further to this, the %GDP generated by the service sector in this same
In explaining the impacts that globalisation has had upon service economies in the UK, the concepts, 'globalisation ' and 'service economy ' must first be defined. MacKinnon & Cumbers (2011) defined globalisation as "… the increased connections … in flows of goods, services, money, information and people across national and continental borders.". The globalisation process may be decomposed into constituent processes in order to explain the impacts it has had, which will be discussed more later.
In turn, a service economy is one, or part of one, that is based on trade in services. A service is characterised by its intangibility, inseparability (the simultaneous production and consumption of services), heterogeneity and perishability over time and space (Regan 1963; Rathmell 1966; Shostack 1977; Zeithaml et al 1985, cited in Wolak 1998). Alternatively, services are economic activities which have no direct involvement with agriculture, mining, or manufacturing (OECD 2000).
Both macro and meso-scale impacts will be examined, starting with the macro; how the service sector as a whole has changed and how globalisation may have fundamentally changed the concept of what a service might be. Inequality as a result of globalisation will then be discussed with particular reference to the North-South divide, before examining market structure changes in terms of levels of competition in the service sector. Finally, meso-scale impacts will be considered, emphasising wage differences in the UK 's service sector.
Figure [ 1 ]: Percentage share of employment in the UK by sector, 1980-2008
Source: ONS 2009, cited in Faulconbridge 2010
The most profound impact has been the expansion of the service sector since the onset of globalisation in the mid-20th century. Figure 1 shows the increase in service employment from 1980 - 2008. Further to this, the %GDP generated by the service sector in this same
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