Trade and Services - Ho Thi Ly

TRADE AND SERVICES HO THI LY- 2190005  1. Trade in Services vs. a. What is Trade inGoods b. What is Trade in Goods? Services? Trade in goods involves Trade in services focuses the exchange on the exchange of...

TRADE AND SERVICES HO THI LY- 2190005  1. Trade in Services vs. a. What is Trade inGoods b. What is Trade in Goods? Services? Trade in goods involves Trade in services focuses the exchange on the exchange of of physical, tangible expertise, products between experiences, or countries. activities that are intangible. Significance: It drives Significance: It supports global supply chains, the global economy and creating jobs and has been growing rapidly  1.1 Differences between Services and a.Goods Trade Tangibility: Goods: Tangible, can be touched, Services: Intangible, consumed seen, and transported. through experiences or expertise. Example: Smartphones, food, Example: An online course or machinery. financial consulting session. b. Storage and Inventory: Goods: Can be stored for future use or Services: Cannot be stored; sale. delivered and consumed Example: A factory storing spare parts simultaneously. for future production. Example: A live concert or a medical appointment. c. Regulation and Standards: Services: Trade Goods: Trade is faces regulatory regulated by tariffs, barriers like customs, and licensing or product standards. qualifications. Example: A shipment Example: A foreign imported from Europe to lawyer needing local Vietnam must comply certification to with tariffs and quality practice in another inspection regulations." country. 1.2 Complementarities between Services and Goods Trade a. Integrated Supply Chains: Services like logistics, transportation, and warehousing ensure the smooth movement of goods globally. Example: Freight companies like DHL help transport products from  b. Value Addition to Goods: Services enhance the quality, appeal, and functionality of goods. Examples: Design Services: Creating visually appealing packaging for products (e.g: Apple’s sleek product design). Marketing Services: Promoting products to international audiences. After-Sales Services:  2. Key Sectors in Service Trade a. Finance: includes banking, insurance, and investment services. Examples: Schengen Visa Insurance Requirements Impact: Facilitates trade by reducing b. Tourism: includes travel, accommodation, and recreational services. Impact: Generates significant revenue and employment opportunities for host countries. Examples: International visitors contributing to Thailand's economy by staying in local hotels. c. Education: Services related to international student exchanges and online learning.  Impact: Promotes cultural exchange and knowledge transfer. Strengthens innovation and workforce development.  Example: Platforms like Zoom providing global access  Challenges in Service Trade 1.Regulatory Barriers: Each nation has its own set of rules, licensing requirements, and professional qualifications that service providers must navigate. b. Market Access: Restrictions on foreign ownership or investment in some sectors, often to protect domestic industries. Examples: India limiting foreign ownership in its telecommunications  c. Digital Trade Barriers: relate to data privacy, cybersecurity concerns, varying digital infrastructure, and restrictions on cross-border data flows. Impact: Slow down the growth of digital services and global e-