《International Trade in Services Lecture PPT》.pdf

EK1216 Current Economic Issues Lecture on International Trade in Services by Wai-Heng Loke 1 Outline  What is a Service?  How is trade in services different from trade in goods?  The four modes  Is services sector important for growth?  Development of trade in services  Barriers to trade in services  The GATS  Benefits of Liberalisation in services trade 2 What is a Service?  Definition  Services are also called ‘intangible goods’ such as hair cut service offered by a barber, a lecture given by a university professor or a movie ticket on sale at a cinema 3 What is a Service? (continued)  …..as opposed to tangible goods such as the sandwich in your lunch box, the book you are holding right now or the chair that you are sitting on. 4 What is a Service? (continued)  The World Bank defines services as ‘intangible goods that are often produced and consumed at the same time’. The service sector of the economy includes: - hotels, restaurants, and wholesale and retail trade; - transport, storage, and communications; - financing, insurance, real estate, and business services; - community and social services (such as education and health care); - and personal services.  See /depweb/english/beyond/global/glossary.html 5 How is Trade in Services different from Trade in Goods?  Service trade differs from goods trade in TWO major ways. 1) The way it is traded - Goods trade involves shipping goods