Question
Describe the nature of composition of internation trade.
Solution
The nature of the goods and services imported and exported by countries have undergone changes during the last century.
Trade in service sector is quite different from trade in the products of primary and manufacturing as the service can be expanded infinitely, consumed by many, are weightless and once produced, can be easily replicated and thus, are capable of generating more profit than producing goods.
The table given the below shows the different types of services and the share of those services traded in the international market.
|
Relevant Services |
Share in % |
|
Commercial services excluding |
|
|
travel and construction services |
35% |
|
Travel |
10–15 |
|
Construction services |
50 |
|
Labour flow |
1-2 |
