Basic Categories of International Trade in Services Chapter Two
Basic Categories of International Trade in Services Chapter Two
Learning objective Grasp the definition and characteristics of international trade in services Understand the classifications and features of international trade in services Familiarize with the statistical methods of international trade in services
Learning Objective • Grasp the definition and characteristics of international trade in services; • Understand the classifications and features of international trade in services; • Familiarize with the statistical methods of international trade in services
1. Concept & Characteristics
1. Concept & Characteristics
1.1 Concept A Traditional definition: When a labor in one country supplie ppl es service to the service demander( natural erson, legal person and other organization) of another counti to obtain foreign currency income following a compensated and voluntary principle, which constitutes the service export
1.1 Concept ▲Traditional definition: When a labor in one country supplies service to the service demander (natural person, legal person and other organization) of another country to obtain foreign currency income following a compensated and voluntary principle, which constitutes the service export
Trade in export service supply Service abor gain forex income demander one counti another country Service Labor pay fees demander Trade in import service
Trade in export service supply gain forex income one country another country buy pay fees Trade in import service Labor Service demander Labor Service demander
On the contrary the demanders of one country become the consumers of the services, supplied by the service producers of another countr thus service import has been formed
On the contrary, the demanders of one country become the consumers of the services, supplied by the service producers of another country, thus service import has been formed
The definition involves service suppliers (labors), nationality national border residents and non- residents So, three fields should be clarified
The definition involves service suppliers (labors), nationality, national border, residents and nonresidents. So, three fields should be clarified:
(1 Connotation and extension of Labor": all the service suppliers, including individual suppliers and group suppliers individual supplier group suppliers
(1) Connotation and extension of “Labor”: all the service suppliers, including individual suppliers and group suppliers. individual supplier group suppliers
(2) Different nationalities of“ labors”and "services demanders": direct investment and local employees Direct loca Investment abors .ocal suppliers local demanders one country Ps: Local labors: service suppliers, e. g. foreign investors who represent the foreign affiliation fo supply services
(2) Different nationalities of “labors” and “services demanders”: direct investment and local employees one country Ps: Local labors: service suppliers, e.g. foreign investors who represent the foreign affiliation to supply services. Direct local Investment labors Local suppliers & local demanders
(3 Whether service crosses border and whether "national person" moves service needs to be crossed Telecom national person does not need to be moved national person needs to be moved Tourism & medical care service does not need to be crossed
(3) Whether service crosses border and whether “national person” moves: service needs to be crossed Telecom: national person does not need to be moved national person needs to be moved Tourism & medical care service does not need to be crossed
