Explain the concept of trade in services.

Economics Balance Of Trade Questions



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Explain the concept of trade in services.

Trade in services refers to the exchange of intangible goods or services between countries. Unlike trade in goods, which involves the physical movement of products, trade in services involves the provision of services such as banking, tourism, transportation, consulting, and telecommunications. It includes any transaction where a service is provided by one country to another, either through cross-border movement or through the presence of foreign affiliates. Trade in services is an important component of a country's balance of trade and can contribute to economic growth and development.