Question

Information processing activities such as credit card billing, hospital billing, account statements, insurance claims, and many other services are being increasingly being “exported” to the U.S from developing nations such as India, Philippines, and others. (a) Do you expect such a trend to continue? Why? (b) Do you personally “support” such a trend? (c) Research and report on at least one other “similar” service (not contained in the above list). (d) Why is China not “big” in this area of services exporting?

Answer 1

Service Exports have grown by 15% from developing country to US. India was the largest beneficiary in 2017 with $5.6 billion worth of exports to US being given duty free status. Liberalisation and Privatisation ensures admission of foreign investors. India's overall exports (Merchandise and service) in 2017-18 is US $498.61 billion. In the past decade China's insurance market has been the most dynamic one.United States stands third in que of largest insurance companies. So developing nations are helping U.S to increase the amount of insurance claims. G-20 was established in 1999 which includes 19 nations. The UNCTAD aims to integrate the developing country with the world economy. As per the current ranking India is 20th largest merchandise and service exporter to U.S. The 11th TPF meeting was held in 2017 with the working froup of trade and market access and maintaining India-US trade relations.

Barriers to trade in service are more complex than barrier of trade in goods. Hospitality billing is yet another service.

Export of Transport services make up 50% of the world trade in commercial service. The largest exporter of transport service is Korea.

Everyone is entitled to their own views. So according to my perception the exporters should restrict the trade relations with U.S to some extent as US is one of the developed country and largest importer too. So other countries should seek intreesi in each other and leave U.S on its own. I don't think it is favourable.

One such service can be Travel and Tourism.

Trade wars have been escalated tension between US and China as a forecast showed the tariff measures should be taken and tariff will be imposed on US by China in 2020. So China is not in this area of service exporting to U.S