Market trends

From WikiTextbook

There have been changes to the number of businesses that fall into each sector over the years. The amount of money earned by each sector has changed over recent years. There has been a movement away from primary and secondary industries towards the tertiary sector. From 1964 to 1993 the tertiary sector grew and now it is responsible for 68% of the total earnings. The pie charts below show how the tertiary sector has earned more money over the years.

The business world has undergone a number of significant changes over recent years that have affected all businesses. The level of consumer spending on different goods and services has changed as average incomes have risen. This has led to an increase in demand for luxury goods such as electrical goods and foreign holidays. This has benefited certain businesses as their sales increase such as travel agents.

Due to changes in the number of businesses falling into each sector sine the Second World War, the business world has changed the way it operates. For example, technological advances have led to faster and more accurate services and an increase in machinery used. This has led to a decrease in the number of employees in some areas of business like banking. Also, consumers have higher demands, such as foreign holidays instead of local ones, leading to a shift in the tourist industry.

However these rises in income have led to some businesses suffereing, such as the tourist industry in Torquay as people choose to holiday abroad rather than in the UK.

The value of the goods and services produced has increased in most years since the Second World War. The only times when the value of goods and services fall is during a recession. There have been three main recessions over the last thirty years (1974 - 75, 1980 - 81, and 1990 - 92) but on average the number of goods and services has increased by a little over 2% each year.

Technological developments have dramatically changed the way some businesses operate. Banks and building societies now rely on machines to carry out the taks that people used to do. This has led to the number of people employed by banks and buiolding societies to fall.

Technological developments have also affected the way that many customers buy their goods and services, for example, more customers are using the internet and other forms of technology.

This move away from manufacturing is largely due to the rise of China and India as world economies. These countries can provide much cheaper labour than in Britain, meaning manufacturing jobs are exported to these countries. Britain's economy has become more service-based, both due to this and in response to the increase in technology - e.g. more doctors exist as there is better medical care, more financial advisers as there has been an increase in wealth, more IT support firms because of the explosion of computer use in the country.

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Changes in Business Activity

The business world has undergone a number of changes over recent years that have affected all businesses. The level of consumer spending on different goods and services has changed as average incomes have risen. This has led to an increase in demand for luxury goods such as electrical goods and foreign holidays. This has benefited certain businesses as their sales increase such as Travel agents.

However these rises in income have led to some businesses suffering, such as the tourist industry in Torquay as people choose to holiday abroad rather than in the UK.

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