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2.2 The shift from manufacturing to services in industrialised economies

There was a profound restructuring of economic activity in ‘older’ industrialised countries in the last quarter of the twentieth century from manufacturing to service activities. There are several reasons for this restructuring. First, the long-established industrialised countries such as Germany, the USA, Japan and the UK have faced increasingly intense competition as more countries have industrialised. Second, productivity, or output per worker, has increased in manufacturing industries
Author(s): The Open University

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