Question

What are some of the characteristics that differentiates trade in services from goods trade? Need answer in minimum of 200-250 words  

Answer 1

In traditional period trade means crossing of goods to borders or domesticaly. Now a days trade in services also increasing in high-income countries. There are many different characteristics for trade in service and goods. They are as follows:-

* Goods are need to be physically cross the border, so they need transportation.

* Services are invisible or intangible, so they doesn't need transportation.

* We can store, produce and move goods and can consumed in different locations but in services it cannodt be store , one have to purchase it without observation.

* Trade in goods need tariff but trade in services doesn't need tariff rather that it need technical barriers.