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《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
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