A nation is said to be economically developed when there is an increase in the share of services in GDP and total employment. Even in the international trade there is a growing importance on services. Services in international trade are subjected to a lot of restrictions such as investment regulations, restriction on repatriation, restrictions on the employment of foreigners, compulsion to use local facilities etc. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

1. Chapter 16
Trade In Services
International Marketing
Chapter-16 Trade In Services

2. Objectives
Why there is growing importance of
services
What are the characteristics and
categories of services’
What are national restrictions
International Marketing
Chapter-16 Trade In Services

3. Introduction
International trade in services, which
make up a major share of the invisibles
account of the Balance of Payments, has
been growing fast.
The services sector which contributes
more than 60 per cent of the world GDP is
growing fast.
The contribution of service to GDP and
employment is substantially high in,
particularly, the developed economies.
International Marketing
Chapter-16 Trade In Services

4. Characteristics And Categories
Of Services
An important characteristic of services that
has far reaching implications for marketing
of services is their inseparability.
Services cannot be separated from their
providers, whether they are persons or
machines.
This does not mean that all services
require the physical proximity of the
provider and user.nternational Marketing
I
Chapter-16 Trade In Services

5. There are two broad categories of
services viz.
1. Those that necessarily require the
physical proximity of the provider and
the user
2. Those that do not, though such physical
proximity may be useful.
International Marketing
Chapter-16 Trade In Services

6. Restrictions
International trade in services involves
intricate issues like right to establish and
factor mobility.
These are the problems faced in liberalizing
trade in services as compared to trade in
goods.
Due to the special characteristics and the
socio-economic and political implications of
certain services, they are, generally, subject
to various types of national restrictions.
International Marketing
Chapter-16 Trade In Services

7. Services In India
India has great potential in a variety of
services.
The large number of scientists,
professionals and skilled and semi-skilled
personnel working abroad is indicative of
India’s potential in several fields.
With proper planning and development,
India can make great strides in services
trade. International Marketing
Chapter-16 Trade In Services

8. Summary
An increase in share of services in the GDP and
total employment leads to economics development.
The growing importance of services is reflected in
the international trade also.
The services in international trade is subject to a
lot of restrictions.
Protective measures include visa requirement,
investment regulations, restriction on repatriation,
marketing regulation, restrictions on the
employment of foreigners, compulsion to use local
facilities etc.
International Marketing
Chapter-16 Trade In Services