Final answer:
Proximity is not always essential in services that can be delivered digitally or remotely, such as online shopping, digital communication, and remote consulting. Technology advancements have played a significant role in changing the definition of utilities, allowing services to be provided beyond local constraints. Examples include online flower delivery and phone services that no longer rely on physical wires.
Step-by-step explanation:
Proximity is not always essential in services that can be provided digitally or remotely. Examples of such services include online shopping, digital communication, and remote consulting. Businesses offering these services do not need to be physically close to their customers because the service can be effectively delivered over the internet or through other digital means. Instead of proximity, these businesses might focus on other competitive advantages like a wide range of products, customer service, or brand reputation.
For instance, ordering flowers over the internet for a friend in a different city demonstrates that proximity is not a requirement for the business providing the service. Similarly, more widespread technology like cellphone systems allows for services like telephone communication to be provided without physical wires, broadening the reach of these services beyond local constraints. As technology advances, it impacts which products are considered utilities and removes the necessity for certain businesses to be physically close to their clients.