11 Explain reasons why the tertiary sector has grown in developed economies.

[M huzaifa jillani]

(Reason1)
(KN)
People in developed countries earn higher incomes
(APP)
For example they send more on services like restaurants, holidays and banking.
(AN)
This increases demand for service businesses, so the tertiary sector grows.
Moderator Comment:
KN:1/1
APP:1/1
AN:0/1(1 element missed)

(Reason 2)
(KN)
New technology has reduced jobs in farming and factories.
(APP)
For instance machines now do much of the work in car factories.
(AN)
More workers move into services like IT, health care and education so, the tertiary sector becomes bigger.

[Haiderabbas]

KN: The tertiary sector grew because higher incomes and tech increased demand for services (income is disposable).

APP for e.g. In 1st world countreis, more people stream movies and shop online, creating jobs in IT, delivery and customer service.

AN: The streaming and online shop example shows digital tech creates whole new service markets. This increases demand for IT and logistics. It shifts jobs from factories to services as incomes and technology use rise. Increase jobs in those industries.

[Qasim_Mahmud]

Kn:Transport services are important for moving raw material to factories
App:Reliable transport reduces delays of receiving raw materials and delivering goods
Analysis:Efficient transport services can reduce overall costs

[Maheen Eman]

[KN] The tertiary sector has grown in developed economies because people have greater disposable incomes these days.
[APP] For example, in the UK and similar countries, the majority of people spend more on services like restaurants, gyms, and holidays.
[AN] This leads to more demand for services, thus new businesses, more jobs, and more growth of the tertiary sector.

[Dania Farooq]

[KN]One reason the tertiary sector has grown in developed economies is because people now have higher disposable incomes which means they can spend more on services.
[APP]For eg, in the UK many families use their extra income on things like holidays abroad, eating out in restaurants or paying for personal services which boosts demand for service industries.
[AN]This means services are now more important than manufacturing nd so businesses make higher profits from offering services nd living standards improve as people have more choice in how they spend their money alsoleading to employment rising in this sector.

[Daris]

KN: Advances in technology (like internet) have helped the tertiary sector grow.
APP: For example, online banking and shopping have become very common in developed countries.
AN: Since developed countries have higher income levels (per capita income); people tend to go for convenience like shopping while doing jobs, or sitting in homes. This increases the demand of service industry. Also, in services the more customers we serve, the lesser per customer costs would be, this leads towards greater profit margins further adding up features to services (mobile apps) and grab more market share.

Examiner Comments:
> Updated Answer

[Ruqyia Salman]

[KN]:One reason the tertiary sector has grown in developed economies is rising incomes and higher living standards,[APP]:For example, in countries like the UK, people spend more money on services such as restaurants, tourism, and financial services as their basic needs are already met.[AN+]:This means demand for tertiary businesses increases, leading to growth in service industries and a shift away from dependence on manufacturing.

[AliAzeem]

[KN De-industrialization
[APP]For example China has started focusing more on its service based industries rather than manufacturing businesses.
[AN] Tertiary sector bears more output than secondary and primary sector which leads to higher GDP leading to economic growth in the country.

[Aayan Zaidi]

KN: The tertiary sector has grown in developed countries because more people now work in services like education, health care and finance instead of manufacturing.
APP: E.g as incomes rise, people spend more on services such as tourism, restaurants, and entertainment.
AN: This shift happens because technology reduces factory jobs, while demand for skilled service jobs increases, making the tertiary sector the largest part of the economy.

[Tuqwa]

(KN):The tertiary sector provides services, and its growth in developed economies is linked to rising income levels and lifestyle changes.
(APP)For example people in developed countries like the UK now have higher disposable incomes allowing them to spend more on nonessential goods and services such as holidays restaurants and entertainment. This increased demand encourages more businesses to offer these services.
(AN)As a result employment shifts from manufacturing to servicebased jobs and the tertiary sector becomes the main contributor to GDP in developed economies.