With the use of a diagram illustrate the four main ways that services are traded across...

With the use of a diagram illustrate the four main ways that services are traded across the world.

Expert Solution

The four main ways that services are traded across the world are following below
1. Cross border trade: Cross border trade occurs when services itself crosses the border without the movement of people. Under this way, services are transported by email, transportatiom services and through telecommunication services. For example, management consulting, business plans, financial advice, e - learning and distance learning.
2. Consumption abroad : Consumption abraod can occurs when the services used by citizen of one nation from another country where service has been supplied. Consumer has to travel across the border to use the service. For example : Tourism and travel related services, study tours regarding education and training etc
3. Commercial presence : It occurs when one company of a nation set up its subsidiaries in another nation to provide services.
For example : investment banks, shipping, warehousing, logistics etc.
d. Movement of natural persons : It means movement of people from country to another to supply services in another country. For example : film industry, production and crew, consultants, specialists etc

Rahul Sunny answered 2 years ago

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