What is meant by ‘trade-in services’?
"Trade in Services" includes all the different ways of providing an international “service”. GATS defines four such methods of providing an international service – these are called modes of delivery/supply. The four different ways or Modes of delivery/supply of services are: | | | Mode | Description | | Cross-Border | The supply of a service from the territory of one member into the territory of any other member. | | Consumption Abroad | The supply of the service in the territory of one member to the service consumer of any other member. | | Commercial Presence | The supply of a service by a service supplier of one member, through commercial presence in the territory of any other member. | | Temporary Movement | The supply of a service by a service supplier of one member, through the presence of natural persons of a member in the territory of any other member. |
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What is the contribution of trade in services globally?
Trade-in services is a fast-growing component of world trade approaching 25% and representing approximately 60% of world foreign direct investment stock. In 2003, the dollar value of global commercial services exports expanded by 13%. Today, services constitute at least 50% of employment in most economies and represent a growing component of manufacturing and agricultural production. Services also play a central role in economic development. Why ‘Trade in Services: an answer book for small and medium-sized exporters’?
In Pakistan, Services represent at least 53% of GDP, as well as its contribution to employment generation, is growing steadfastly. It has strong forward and backward linkages with the major sectors of the economy such as textiles and commodities. Pakistan’s total exports in services were US $ 3.77 Billion and import US $ 8.20 billion during 2006. The sub-sectors which contribute greatly to the services sector overall include financial, construction, and business services such as computer, IT, engineering, legal, and accounting services. Information technology and related services are the most significant in terms of the scope and scale of export markets and to the extent to which these services are currently being delivered. Professional services, such as legal and accounting, are the promising sector. The adapted version of the ITC publication Trade in Services: An answer book for Small and Medium-sized exporters, provides a useful resource for Pakistan services exporters and SMEs. Using a question and answer format provides practical advice to help them improve their export performance or enter new markets. Who must review ‘Trade in Services: An answer book for small and medium-sized exporters’? Business start-ups for gaining knowledge on the service sector of Pakistan and exporting services. Businesses currently functioning that seek to expand to foreign markets for services export. Small businesses/ consultants needing a quick reference guide on the most commonly asked questions on service exporting. Students and instructors needing a comprehensive overview of the services sector of Pakistan and services exporting. Appendix
Table of Contents | Making the decision to export 1. What do ‘exporting’ services mean? 2. Why should my service firm export? 3. What are the advantages to be gained from exporting my services? 4. What challenges do I face in exporting my services? 5. How do I reduce the risks associated with exporting services? 6. How do I find out whether my service will be competitive abroad? 7. What do I need in order to export successfully? 8. How do I decide when the time is right to start exporting? 9. What are the most common mistakes made by service exporters? 10.How do I assess my firm’s potential for export success? | Preparing to export 11. What are the typical steps in developing an export strategy for services? 12. Why do I need an export strategy? 13. How can I build credibility abroad as a service provider? 14. How can I obtain export-related experience? 15. How do I contact firms that are successful exporters? 16. How long must I wait before I can expect to see a profit? 17. How can my firm best finance its export market development? 18. How do I use the Internet to assist my export initiative? 19. How should my firm plan its transition to e-trade? 20. How should my firm prepare to export? 21. What domestic market development strategies will also work abroad? 22. Who in my firm needs to support the export plan? | Choosing your market 23. What makes an export market attractive for my service? 24. Which type of market should I consider? 25. How will I know if my service will sell in a particular market? 26. How can my firm get the most from market research interviews? 27. Where can I find market information? 28. How do I obtain information on a particular market? 29. Where do I find information on market entry restrictions? 30. Where do I find information on industry standards and regulations for my service industry in a particular market? 31. How do I find out who my competitors are and what they are offering? | Finding your customers 32. How do I develop a reputation within a specific foreign market? 33. How do I find out which trade events would be best for me to attend? 34. How do I prepare for an international trade event? 35. Should I join an industry or trade association in my target market? 36. How do I identify possible customers? 37. How do I get potential customers to notice my new service? 38. What should I do first if I want to bid on government contracts? 39. Where can I find out about international bidding opportunities? 40. How do I find out about the telecommunications infrastructure in my target markets? | Choosing a strategy for exporting services 41. What is the best way to enter a foreign market? 42. How do I enter a market virtually? 43. How can I maximize my profitability? 44. How can I use existing customers to develop export markets? 45. How can I use my country’s national export strategy to assist my export efforts? 46. When should I work with a local partner? 47. How should I choose a local partner? 48. What are the common problems that arise when working with local partners 49. How can I make sure that my local partnership will be effective? | Cultural considerations 50. Why do cultural differences matter in exporting my service? 51. How do cultures differ? 52. What are the main differences in business practices from country to country? 53. Where can I find information on business practices and etiquette in particular markets? 54. What are the implications of culture for the design of my service delivery? 55. How do I customize my services for a particular market? 56. Does gender make a difference in doing business abroad? 57. What can I do as a businesswoman to overcome prejudices? 58. In what language should I deliver my service? 59. Will I need an interpreter? 60. How can I work best with an interpreter? 61. What are the main cultural errors committed in the provision of services abroad? | Promotional materials 62. What kinds of promotional materials will I need? 63. What should my promotional materials contain? 64. What are the characteristics of a user-friendly website? 65. What information do I need on my business card? 66. Are my promotional materials of an appropriate quality? 67. Do I need to have my promotional materials translated? | Quality assurance 68. What quality factors matter to customers abroad? 69. What quality standards are relevant to services exporting? 70. What is quality in services? 71. Will a small and medium-sized firm be able to implement ISO 9001:2000? 72. What is ISO 9000:2000? 73. What is an environmental management system and what is ISO 14000? 74. How do I decide whether I should be registered to ISO 9001? 75. How does one get registered to ISO 9000? 76. Where can I find more information on quality standards relevant to my industry? 77. What are the benefits of registration to ISO 9000? 78. What are the costs of ISO 9000 certification? | Pricing your service 79. How do I set a price for my service in a foreign market? 80. What are the most common pricing mistakes? 81. What should you do about an online request for bids? 82. How important a variable is a price in the customer’s purchase decision? 83. How do I find out what my competitors are charging their services? 84. How do I negotiate a price for my service? | Financing and getting paid 85. What terms should be specified in my contract to make sure I get paid? 86. What terms of payment should I insist on? 87. How do I arrange for a wire transfer or direct deposit? 88. How do I encourage my bank to be supportive of my business? 89. What type of insurance should I consider for my business? 90. How do I manage foreign exchange risk? 91. How do I assess my customer’s ability to pay? 92. What should I do if my customer fails to pay? | Temporary market entry 93. Under what conditions can I travel freely to other markets? 94. How do I find out about restrictions on foreign travel to specific markets? 95. How do I make my border crossings as easy as possible? 96. How do I find out about public holidays in my target market? 97. What safety precautions should I take when traveling abroad? | WTO and GATS 98. What is the World Trade Organization? 99. What is the General Agreement on Trade in Services? 100. How do GATS and the WTO Agreement as a whole help me as an exporter of services? 101. Where can I get information on liberalization commitments in my service sector? 102. What should I do if I think that my exports of services are being unfairly blocked in foreign markets? |
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