Explanatory Notes — Trade in Services
International trade in services consists of the purchase and sale of services (and intellectual property) between residents of different countries. The traders may be individuals, private businesses or government agencies.
An advertising agency developing and selling a TV commercial to a foreign client or an engineering firm designing a bridge to be built in another country are both engaged in exporting services.
Investors buying securities at a foreign stock exchange or a manufacturer asking a foreign firm to design a new line of products are both involved in importing services.
Thus, as outlined in the section on the types of trade of statistics, these transactions can only be measured by tracking the flow of money between residents and non-residents, and information is available at an aggregate level only.
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