Learning objectives

After studying this chapter, readers will be able to:

• understand the composition of global trade in services and its impact on developing countries and trade regulations

• appreciate the meaning of globalisation for services, its drivers and future trends

• explain the impact of regionalism on services

• analyse the impact of issues in the national environment for service providers.

Introduction

The previous chapter discussed the significance and characteristics of services, and the need for an integrated services management model that incorporates a holistic approach in addressing its management complexities. This chapter discusses the diverse ways in which the macro and micro context, or environmental context, impacts on the dynamics and characteristics of service activities. In a sense, there is no significant difference between the environments in which services are delivered, and goods are manufactured and marketed. At the same time, the different nature of services justifies the argument that the services environment is considerably different. This chapter discusses how the environment contributes to the macro and micro challenges and opportunities that service providers now face. At the macro environmental level of trade in services, the impact of globalisation is discussed, together with the impact and realities of regionalisation. At the micro environmental level, the influences and impacts of national and country issues for services are also presented. Key aspects of the national environment considered include the political, economic, legal, technological, competitive and societal spheres, and how these various aspects contribute to the risk environment.