A service export is any service (economic output of intangible commodities that may be produced, transferred, and consumed at the same time) provided by a resident in one country to people or companies from another.
Four Modes of trade in Services
- Cross-border supply: Cross-border supply is the supply of a service from the territory of one Member into the territory of any other Member.
- Consumption abroad: This happens when the consumer moves to the territory of another country and buys services there. For example, tourism
- Supply through Commercial Presence: This involves direct investment in the export market through the establishment of a business for the purpose of supplying a service.
- Supply through the Movement of Natural Persons: Supply through the movement of natural persons means “the temporary entry of an individual in the territory of another Member for the purpose of supplying a service”.
Tourism and transport are the leading service exports. Financial and ICT services are showing promising trends. There is little activity in business services but significant considering that the domestic market is very large for these and tends to create complacency.