Service Economy Overview and Deindustrialization

An economic system where services (like consulting, healthcare, or education) make up a larger portion of the economy than goods-producing industries.

A shift from a predominantly manufacturing-based economy to one that relies more on services and less on industrial production.

The breakdown of a country's Gross Domestic Product (GDP) by the different sectors of the economy (e.g., agriculture, industry, services).

The increasing significance of the service sector in global economies.

Innovations in communication and technology that facilitated the growth of global services.

The example of a city centered around manufacturing (cars) that faced economic hardship due to shifting demand and competition.

The increase in the importance of the service sector globally over time, surpassing agriculture and manufacturing.

The ability to deliver services across international borders, enabled by technology.

The percentage breakdown of a country's Gross Domestic Product (GDP) across various sectors (agriculture, industry, services).

Outputs of service industries that are not physical products, such as advice, experiences, or attention.

Pittsburgh's shift from a steel-based economy to one centered around healthcare and other services.

Major cities that serve as centers of global commerce and finance, driven by advanced services and interconnectedness.

Large difference between high and low wages in a service-based economy.

Innovations in communication and transportation that enabled the rise of global services.

Unequal distribution of wealth and economic opportunity, often seen as worsening with economic shifts.

The increased interdependence of global cities through economic and cultural exchanges.

Jobs involved in providing services, ranging from high-skill, high-paying roles to low-skill, low-paying ones.

Deindustrialization often leads to widespread poverty, inequality, and social decay.

19th-century economic theory demonstrating the constraint on trade based on slow communication speed.

The decrease in the steel industry due to several factors such as recession, oil crisis, competition and increased automation.

The part of the economy focused on providing intangible services like transportation, healthcare, or education, rather than physical goods.

An income distribution pattern where a small elite earns significantly more than the majority of the population, while a smaller group at the bottom also struggles financially, creating a 'U' shape.

A defining feature of services, meaning they cannot be touched or physically owned, making them intangible goods.

The simultaneous production and consumption of a service, meaning it cannot be saved or stored.

The knowledge-based part of the economy involving activities like IT, consulting, education, and finance.

The highest level of decision-making in the economy, affecting large populations or entire nations.

When a company sets up production facilities in another country to manufacture goods for its home market.

Investment by a company in another country, aiming to sell goods or services in the local market, not just the home market.

Hiring a foreign company to perform a function for your own business, instead of doing it yourself.

Although intangible, services like tourism and transportation can have significant environmental consequences, often leading to pollution and resource depletion.

Cruise ships can be major polluters, generating large quantities of waste, burning hazardous fuel and releasing toxic substances into the ocean.

The quaternary and quinary sectors represent a shift towards knowledge-based and high-level decision-making economies.

How different stages of production are spread across different countries, based on factors like labor costs, regulations, and access to materials.

Balancing the benefits of lower costs and faster production with the drawbacks of disruptions and logistical challenges in global systems.

Essential activities like research and development often remain within the company's home country, while manufacturing or assembly tasks are more likely to be offshored.

Moving financial activities outside a country's regulations to benefit from lower taxes or fewer oversight.

Small countries that offer low taxes and weak financial regulations, attracting companies looking to reduce their tax burden.

A massive leak of financial documents in 2016 that exposed widespread use of offshore accounts and tax evasion by wealthy individuals and companies.

A landmark ruling that established the principle of taxation based on control and decision-making, not just physical location.

A Six-step framework (Anticipate, Detect, Diagnose, Activate, Protect, Track) for managing disruptions and building resilience in supply chains.

Identifying potential disruptions, both known and unknown-but-knowable, by analyzing trends, simulating scenarios, and seeking diverse perspectives.

Monitoring key indicators and setting up alerts to identify disruptions as they occur, enabling timely intervention.

Understanding the nature and scope of a disruption to guide appropriate response actions and minimize impact.

A real-world example of a company's response to a pandemic, highlighting challenges and key learnings in supply chain management.

The ability of a supply chain to withstand or quickly recover from disruptions, ensuring continued operations and meeting customer needs.

The initial stage of the ADDAPT framework that aims to identify potential disruptions early.

This stage involves investigating disruptions thoroughly to understand the root cause and plan effective responses.

The stage where companies take immediate action to stabilize operations and mitigate the impact of disruptions.

The stage focused on proactively preventing future disruptions by improving supply chain resilience and making necessary adjustments.

The continual monitoring of supply chains to ensure the effectiveness of implemented solutions and proactive detection of new potential disruptions.

The final stage where organizations use their experiences and insights to further refine and enhance their supply chain resilience.

Rare, high-impact events that are difficult to predict and often have significant consequences for supply chains.