SERVICE INDUSTRIES Lesson Note
Learning Objectives
This SS3 Economics lesson note covers SERVICE INDUSTRIES for First Term, Week 5.
Lesson Note
Learning Objectives
At the end of the lesson, students should be able to:
1. Define service industry.
2. Explain the meaning of service industries.
3. Identify examples of service industries.
4. Explain the functions of tourism, transportation, banking, insurance, warehousing and advertising.
5. Discuss the contributions of service industries to the development of Nigeria.
MEANING OF SERVICE INDUSTRY
A service industry is an industry that provides services rather than physical goods to individuals, businesses and government.
Examples: banking, transportation, tourism, insurance, warehousing and advertising
A. TOURISM
Tourism refers to the movement of people from their usual place of residence to another place for purposes such as recreation, education, business or cultural activities.
Examples of tourism activities in Nigeria include:
Visiting national parks and game reserves
CONTRIBUTIONS OF TOURISM
1. Generates revenue for individuals and government
2. Creates employment opportunities.
3. Earns foreign exchange
4. Encourages the development of infrastructure.
B. TRANSPORTATION
Transportation is the movement of people, goods and services from one place to another.
CONTRIBUTIONS OF TRANSPORTATION
1. Facilitates the movement of goods and people
2. Promotes domestic and international trade.
3. Makes distribution of goods easier
4. Creates employment opportunities.
C. BANKING
Banking involves the provision of financial services such as accepting deposits, granting loans, transferring money and facilitating payments.
CONTRIBUTIONS OF BANKING
1. Mobilises savings from the public.
2. Provides loans for businesses and investments.
3. Facilitates trade and payments.
4. Creates employment.
D. INSURANCE
Insurance is an arrangement whereby an individual or organisation is protected against possible financial losses arising from specified risks, in return for the payment of a premium
CONTRIBUTIONS OF INSURANCE
1. Provides protection against risks.
2. Encourages investment by reducing uncertainty
3. Provides compensation for insured losses.
E. WAREHOUSING
Warehousing is the process of storing goods in a suitable place until they are needed for sale or further production.
CONTRIBUTIONS OF WAREHOUSING
1. Provides storage facilities for goods.
2. Prevents damage and deterioration of goods.
3. Makes goods available when needed.
F. ADVERTISING
Advertising is a form of communication used by producers or sellers to inform and persuade people about the availability and qualities of goods and services.
CONTRIBUTIONS OF ADVERTISING
1. Creates awareness of goods and services.
2. Increases sales
3. Encourages competition among producers.
CONTRIBUTIONS OF SERVICE Industries to the Development of Nigeria
1. Employment Creation:
They provide jobs for people in areas such as banking, transportation, tourism, insurance, advertising and warehousing.
2. Generation of Income:
Workers and business owners in the service sector earn income, which helps to improve their standard of living.
3. Promotion of Trade:
Transportation, banking, insurance and warehousing make it easier for goods to be produced, moved, stored and sold.
4. Provision of Revenue to Government:
The government receives taxes, fees and other revenues from service industries.
5. Foreign Exchange Earnings:
Tourism, transportation and other service activities can generate foreign exchange through international visitors and transactions.
Evaluation
OBJECTIVES QUESTIONS
1. A service industry is mainly concerned with the provision of ______.
A. raw materials
B. services
C. finished goods
D. agricultural products
2. Which of the following is a service industry?
A. Mining
B. Farming
C. Banking
D. Manufacturing
3. The movement of people and goods from one place to another is known as ______.
A. warehousing
B. transportation
C. advertising
D. insurance
4. Which of the following is a major function of a bank?
A. Storing physical goods
B. Accepting deposits
C. Producing food
D. Manufacturing vehicles
5. Insurance mainly provides protection against ______.
A. competition
B. risks and losses
C. advertising
D. transportation
6. The storage of goods until they are needed is known as ______.
A. advertising
B. warehousing
C. tourism
D. banking
7. Which of the following is a medium of advertising?
A. Television
B. Warehouse
C. Bank vault
D. Railway station
8. One important contribution of tourism to Nigeria is the ______.
A. reduction of employment
B. generation of foreign exchange
C. reduction of trade
D. destruction of infrastructure
9. Which service industry helps producers to store goods safely?
A. Insurance
B. Banking
C. Warehousing
D. Advertising
10. One major contribution of service industries to Nigeria's development is ______.
A. creation of employment
B. reduction of investment
C. discouragement of trade
D. reduction of income
Theory Questions
1a. What is a service industry
1b. Mention six examples of service industries
2a. Explain three functions of transportation.
2b. State four contributions of banking to the Nigerian economy.