<P> Historically, manufacturing tended to be more open to international trade and competition than services . However, with dramatic cost reduction and speed and reliability improvements in the transportation of people and the communication of information, the service sector now includes some of the most intensive international competition, despite residual protectionism . </P> <P> Service providers face obstacles selling services that goods - sellers rarely face . Services are intangible, making it difficult for potential customers to understand what they will receive and what value it will hold for them . Indeed, some, such as consultants and providers of investment services, offer no guarantees of the value for price paid . </P> <P> Since the quality of most services depends largely on the quality of the individuals providing the services, "people costs" are usually a high fraction of service costs . Whereas a manufacturer may use technology, simplification, and other techniques to lower the cost of goods sold, the service provider often faces an unrelenting pattern of increasing costs . </P> <P> Product differentiation is often difficult . For example, how does one choose one investment adviser over another, since they are often seen to provide identical services? Charging a premium for services is usually an option only for the most established firms, who charge extra based upon brand recognition . </P>

In which sector is transport and communication included