Goods
and services are tangible and intangible goods that are produced and purchased
in order to fulfill the needs and desires of consumers. Most countries base
their economy on the production and consumption of both physical goods and
intangible services that people at home and abroad are willing to purchase. In
many cases, both the services and the goods are offered simultaneously.
Goods
are simply any physical or tangible products that can be seen and touched. Some
goods are quickly consumed and must be replaced by like or similar products on
a regular basis. Food is one example of goods that are quickly consumed and
must be acquired repeatedly. Other forms of goods are more long-term in nature,
and may last for years or even decades. Furniture, cutlery, and houses are
examples of durable
goods that are intended to satisfy consumers for extended periods of time.
Services are intangible support that is
provided to the consumer in some manner. A physician provides healthcare
support or services. Telephone companies provide communications services such
as local calling ability, long distance calling, and other features that
enhance the electronic communication process. Banks provide a range of
financial services to customers, ranging from basic and checking accounts to investment
opportunities.
Often, goods and services are presented
as a unified package, providing a well-rounded and attractive option for the
consumer. For example, a restaurant offers food, which is easily identified as
goods. At the same time, the food is prepared for the consumer, and brought to
the table by a server; thus, the goods are complemented with service.
Communication companies may offer some type of equipment at no extra charge,
provided the customer commits to using their services for a certain period of
time, clearly another marriage of goods and services.
Most countries around the world depend on the
production of goods and services to stimulate the economy. It is not unusual
for nations to impose some type of goods and service tax on these products,
which helps to create a steady stream of revenue for the operation of the
central government. While the specifics of a goods and services act will vary
somewhat from one country to another, most will address the production and
consumption of goods and services that are meant for export as well as those
that are consumed domestically. In addition to federal taxation on products
that are manufactured within the country, there is often some type of tax
structure applied to any goods and services that are brought into the nation
from other sources.