The business world has undergone a number of significant changes over recent years.
The level of consumer spending on different goods and services has changed as average incomes have risen. This has led to an increase in demand for luxury goods such as electrical items and foreign holidays. Some businesses have benefited from this change, seeing an increase in sales (travel agents, for example).
However, rises in levels of income have led to some businesses suffering. For example, the tourist industry in Torquay has declined as people choose to holiday abroad rather than in the UK.
The value of goods and services has increased in most years since the Second World War. The only times when the value of goods and services fall is during a recession. There have been three main recessions over the last 30 years (1974-75, 1980-81 and 1990-92) but on average the number of goods and services has increased by a little over 2% each year.
Technological developments have dramatically changed the way some businesses operate. Banks and building societies now rely on machines to carry out the tasks that people used to do and this has led to a fall in the number of people they employ.
