The changing face of British Commerce and Industry
Economists talk about Commerce and Industry in terms of being Production and Services
• Production means making and producing stuff, so it includes manufacturing goods and extracting raw materials.
• Services includes anything else consumed at point of sale, so it includes retail, finance and the services of technicians such as IT
The rise of the Digital age from its beginnings in the 1950’s, the advent of the more recent Information Age and the general boom in technological achievement has had a profound effect on the worlds markets and structure of Business and Commerce. Although we still need goods, making things and selling them is no longer what Britain is about.
Since we entered the 2000’s the trade in services has risen sharply, exporting more than we import. In 2011 it reached a record surplus of £76.4 billion. However, the net balance of trade was hampered by the trade in goods which produced a record net deficit of £100 billion.