Give a comparative of tertiary commercial activities in the developed and developing countries?
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The thesis examines the development of the tertiary sector in the BRIC (Brazil, Russia, India and China) countries in comparison to developed countries. Three factors are attributed to the growth of the tertiary sector: globalization, technological development and deregulation as part of the government policies. Globalization consists of integration between countries and the removal of protection policies, which helps to promote service trade activities across borders especially in the financial sector. Technological development decreases employment opportunities in the manufacturing sector as less labor unit inputs are required for output. Deregulation in policies reduces the government's presence in the market and causes countries to transform into more liberal market economies, which destroy complementary institutions such as labor unions and reduces employment in the manufacturing sector. Theoretical framework was utilized to define these terms and to show their effect in statistical values.
Statistical data was analyzed from various institutions, such as World Bank World Trade Organization and International Monetary Fund in order to prove that proportion of the tertiary sector is increasing in the BRIC countries. Currently the traditional models of the tertiary sector growth are not fully representing the correct rate of growth of the tertiary sector in the BRIC countries in respect to manufacturing and agricultural sectors. For example, India and Brazil still have larger agricultural sectors than manufacturing although they both have very large service sectors. The reason for the lack of appropriate models is the lack of research being done on the topic and lack of general consensus on what exactly constitutes the tertiary sector.
In order to fill the literature gap, the thesis analyzes each BRIC country individually to outline specific factors that lead to growth of the tertiary sector. The research is limited due to bias and systematic errors in the collected statistics and due to varying definitions of tertiary sector by various organizations. The conclusion states that while the growth of the tertiary sector is certainly visible in the BRIC countries and highly probable, in the long run the BRIC countries will have similar GDP composition to the currently developed countries. Nevertheless, it is useful to study historical economic data of the currently developed countries and then compare them to the current time in order to outline main differences and patterns that might make conclusion more accurate. Furthermore, it is useful to use comparative and absolute advantages of the BRIC countries in order to deduce how far their service sector can expand in proportion to the agricultural and manufacturing sectors