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The Rise of the Service Economy

- Services has a growing share inany of the big countries
- US or Germany have a long tradition in service economy
- China or India have switched to services more into the last century
- In most countries, services represent more than 50% of the overall economy
- Service economy is growing due to various reasons:
- substituting technology for human labor in many agricultural and manufacturing process
- labor is moved to low cost locations (countries) which makes allows countries that oursource production to focus on services.
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IBM Survey on national labor data, 2004