Changes in the relative importance of economic activities are influenced by a number of factors: They

include Modernization. De industrialization, outsourcing, offshoring, globalization, education and

training and technology.

Modernization is a sociological theory that states that as society becomes more civilized they move
away from a traditional based society where primary economic activity is predominant to an
industrialized one in which manufacturing and processing is centered in the society. Advantages of this
model include a rise in GDP earnings, an increase employment and linkages. Disadvantages include
environmental degradation and

deindustrialization is the process by which an economy is transformed from manufacturing to one based
on service sector. Its emphasis is on engaging in an economic sector that is less damaging to the
environment and maintaining the principle of sustainability and a rise in tourism and profitability in
service sector oriented industries which are better in creating economic linkages which benefits the
populace through multiplier effects. However, with this process there are some notable disadvantages
such as structural unemployment and social decline.

Education is the process of gaining knowledge, skill, and development from study or training. Training,
is the process of learning the skills one needs to do a particular job or activity. These processes aid in the
advancement of the skill set of the population so that they can exploit their resources to achieve GDP,
reduce unemployment and increase the country’s rank of the human development index.

Offshoring is the relocation of a business process from one country to another in order to benefit from
cheaper production of lower laborer expenses.

Outsourcing refers to the process in which obtain (goods or a service) by contract from an outside
supplier.

Globalization is the process by which businesses or other organizations develop international influence
or start operating on an international scale

Technology refers to methods, systems, and devices which are the result of scientific knowledge being
used for practical purposes