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2. Examine the important role of services in
international business.
Understand why trade in services is more
complex than trade in goods.
Appreciate the heightened sensitivity required
for international service success.
Learn that stand-alone services are becoming
more important to world trade.
Examine the competitive advantage of firms in
the service sector.
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3. The rise of the service sector is a global
phenomenon.
Economies of developing countries
generally first establish agricultural and
manufacturing sectors before entering
into the services sector.
As more countries enter the sector, the
global services business will become
more competitive.
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4. The rise in services trade is due to
changes in the environment and in
technology.
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6. Easy access to
global markets.
Little-known firms
can become known.
Electronic business
media occurs at
different rates in
different countries.
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7. Banking and consulting services can
become internationally competitive.
Insurance services can be sold
internationally.
Communication services have excellent
success in international operations.
Institutions successfully offer
international teaching services.
Tourism is a major service export.
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8. Novices follow the path of
the good, if the service is
delivered in support of a
good.
New marketers search for
similar market situations
abroad if the service is
independent from goods.
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9. Will the service be
directed at people or
things?
Will the service act
result in tangible or
intangible actions?
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10. Directed at People’s Minds:
◦ Arts
◦ Religion
◦ Consulting
Directed at People’s Bodies:
◦ Healthcare
◦ Fitness
◦ Restaurants
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11. Directed at physical
possessions:
◦ Laundry
◦ Landscaping
◦ Refueling
Directed at intangible assets:
◦ Banking
◦ Research
◦ Investments
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12. Providing objective verification
of their capabilities.
Providing personal guarantees
of performance.
Cultivating a professional
image.
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13. Customer interface is intense.
Proper provisions must be
made for training of
personnel.
Major emphasis must be
placed on appearance.
The person delivering the
service communicates the
overall attitude/value of the
service corporation.
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14. Because services cannot be
stored, there is greater
responsiveness to demand
fluctuations.
Greater pricing flexibility
must be maintained.
The intangibility of services
makes financing more
difficult.
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