Flows of Services Flashcards
Services.
They are economic activities that are traded without the production of material goods eg financial or insurance services.
What are high level services?
Services by businesses such as finance, insurance and advertising.
What are low level services?
Services to consumers such as banking, travel and tourism and call centres.
What do services such as banking, insurance and advertising depend on?
Communication and transfers of information.
They can be footloose and can locate anywhere.
Advancing technology means they can serve customers word wide.
Where are high level services concentrated?
In cities in more developed countries.
London, New York and Tokyo.
These are major centres for industry and finance.
Why is Frankfurt important?
Its home to the European Central Bank of the EU, Toronto and Zurich.
Define conglomerates.
Collection of different companies or organisations which are involved in different businesses but all report to one parent company - transnational cooperations.
Give 2 examples of conglomerates.
HSBC - banking and finance.
TUI - travel and tourism.
Why do call centres for example move to developing countries.
UK –> India.
Labour costs 10-20% cheaper.
