Question

What do you mean by Trade in Services?

• A. Exchange of services between residents and non-residents of an economy.
• B. Exchange of products between residents and non-residents of an economy.
• C. Exchange of products and services between residents and non-residents of an economy.
• D. None of the above

Answer 1

Answer: (A)

Exchange of services between residents and non-residents of an economy.

Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services that takes place between a producer and consumer that are, in legal terms, based in different countries is called International Trade in Services.