Globalization and growth of international trade services. International trade services: quantitative and qualitative indexes

Date: 2015-10-07; view: 388.

Theme 9. International trade services

1. Globalization and growth of international trade services. International trade services: quantitative and qualitative indexes.

2. World export and world import of services. International trade services and multinational corporation activities. State regulation of international trade services.

3. WTO and regulation of international trade services. The qualifier of services in international trade. Features of services as object of export and import. World markets of services: problems and development tendencies.

4. Market development of services in Kazakhstan.

Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Globalization describes the interplay across cultures of macro-social forces. These forces include religion, politics, and economics. Globalization can erode and universalize the characteristics of a local group. Advances in transportation and telecommunications infrastructure, including the rise of the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.

Though several scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE.Since the beginning of the 20th century, the pace of globalization has proceeded at a rapid rate.

The term globalization has been in increasing use since the mid 1980s and especially since the mid 1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.

Singapore, the top country in the Enabling Trade Index, embraced globalization and became a highly developed country

An absolute trade advantage exists when countries can produce a commodity with less costs per unit produced than could its trading partner. By the same reasoning, it should import commodities in which it has an absolute disadvantage. While there are possible gains from trade with absolute advantage, comparative advantage—that is, the ability to offer goods and services at a lower marginal and opportunity cost—extends the range of possible mutually beneficial exchanges. In a globalized business environment, companies argue that the comparative advantages offered by international trade have become essential to remaining competitive.

In economics, a service is an intangible commodity. More specifically, services are an intangible equivalent of economic goods.

Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it. Public services are those societies as a whole pays for through taxes and other means.

By composing and orchestrating the appropriate level of resources, skill, ingenuity, and experience for effecting specific benefits for service consumers, service providers participate in an economy without the restrictions of carrying inventory (stock) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require consistent service marketing and upgrading in the face of competition which has equally few physical restrictions. Many so-called services, however, require large physical structures and equipment, and consume large amounts of resources, such as transportation services and the military. Providers of services make up the tertiary sector of the economy.

Services can be paraphrased in terms of their generic key characteristics.