ap chap 19-20

• agriculture is the primary source of raw materials
• Goods are tangible products that satisfy economic wants.
• Services are non-tangible outputs that satisfy economic wants
• Service sector complements the roles of agricultural and industrial sectors
• It facilitates the process of production, distribution and consumption of products. It is this function that defines the role of service sector as the tertiary sector
• Agriculture is the primary sector, being th primary source of raw materials.
• Professing raw materials into goods is the function of the secondary sector, which is the industrial sector
• service sector covers two major types of services: market services and non-market services
• Market services are profit-oriented service activities. These include trade and commerce, transportation and communication, financial operations, business and accommodation, and food services, and real estate
• Nonmarket services public services that are generally offered at significantly low price, if not for free. These include administration, health, education, and social work
• For years, the service sector has been the biggest contributor to the Philippine gross domestic product and gross national income
• According to the Philippines statistics authority (PSA), transport industry covers activities on the provision of passenger or freight transport, whether scheduled or not, by rail, pipeline, road, water or air and associated activities such as terminal and parking facilities, cargo handling storage, etc.
• information and communication industry includes activities on production and distribution of information and cultural products, the provision of the means to transmit or distribute these products, as well as data on communications, information technology
• this subsector is the biggest industry group in the service sector. Trade and commerce is the selling of products in the market on wholesale of retail basis.
• Retail is selling goods on per-unit basis while wholesale is selling in bulk
• Maintenance and repair of motor vehicles, motorcycles, personal and household goods refers to the restoration of the mentioned goods to functional condition so that their use can be maximised
• financial intermediation subsector refers primarily to the banking industry.
• Intermediation is role performed by the banking sector when it links the borrowers and the depositers
• Other services cover a wide array of industries such as education; health and social work; hotels and restaurants, sewage and refuse disposal sanitation and similar activities; recreational, cultural, and sporting activities; and other services
• According to the Philippine statistics Authority (PSA), Public administration & Defense; Compulsory social security includes activities of governmental nature, normally carried out by the public administration
• The business process outsourcing (BPO) industry has been a top performer in the service sector since it started in the Philippines in the 1990s.
• Contact centers, better known as call centers, are the fastest growing subsector of the BPO industry.
• A contact center is a central point that manages customer interactions from various channels.
• Working overseas from home is another emerging economic opportunity in the service sector
• Another important segment if the Philippine service sector is the services export. This refers to the services rendered by filipinos working abroad and whose remittances contribute significantly to the Philippine economy
• Remittances from abroad play a major role in shoring up the Philippine gross international reserves (foreign exchange reserves) and more than compensate dor the country's consistently negative balance of trade
• Tourism is another important service sector segment that has a lot of potentials for growth because of its great multiplier effect.
• The department of trade and industry's (DTI) Services roadmap outlines the Philippines government's plans for securing the future of the service sector.
• Businesses operating illegally are identified with informal sector.
• In 1972, The international labor organization (ILO) mentioned for the first time the term informal sector in the ILO employment mission report on Kenya.
• The report recognised informal sector as another dimension of the economy. The sector is popularly called black market. The other names for it are shadow economy, underground economy, unorganized economy, off-the-book economy, or informal economy
• Another researcher, Alonzo (1989), describes informal sector as a "haven for disguised employment where labor could be pulled out anytime with hardly any loss in aggregate output" or kne which is "behaving efficiently within the given restraints that it faces, with workers receiving the revenue of the marginal products."
• Farming, which uses unpaid labor or practices the traditional method of cultivation; and other own-account work done by the household themselves;
• Small-scale mining activities of households in both metallic and nonmetallic minerals, such as gold panning and gravel and sand gathering;
• The manufacture of consumer goods by household enterprises, such as home baking, hand weaving, furniture-making, and toy-making;
• Construction of new structures and repair and maintenance of existing structures both undertaken by household enterprises and/or own-account workers;
• Small-scale operation of road transport (such as jeepneys and tricycles) and water vessels, as well as the loading and unloading services by own-account workers;
• Financial services provided by unregistered lenders, who also borrow money to mobilize funds for lending;
• Wholesaling and retailing activities where production operations are not separated from household operations, including trading activities done outside the dwelling premises where there is an absence of division of labor and operations capital;
• Leasing operations of households and the real estate services by own-account workers;