Scribd
Upload
22 views1 page

IFT Notes

Uploaded by

K60 Vũ Ngọc Yến
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
22 views1 page

IFT Notes

Uploaded by

K60 Vũ Ngọc Yến
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Chapter 1: Introduction

The four modes of supply are classifications used by the World Trade Organization (WTO) under the
General Agreement on Trade in Services (GATS) to describe how services can be traded internationally.
Here’s an explanation of each:

Mode 1: Cross-border Supply

 Explanation: In this mode, services are provided from the territory of one country to the
territory of another without the need for the service provider or the consumer to move
physically. The service itself crosses borders, often via digital or communication channels.

 Example: Online consulting, where a consultant in Germany provides advice to a client in the US
via video call.

Mode 2: Consumption Abroad

 Explanation: This mode involves the consumer traveling to another country to consume a
service in that location. Here, the consumer crosses borders to access the service, rather than
the service provider moving.

 Example: Tourism or studying abroad, like a student from Brazil going to Canada for a university
education.

Mode 3: Commercial Presence

 Explanation: In this mode, a company from one country sets up a subsidiary, branch, or
representative office in another country to provide services there. This allows for a local
presence in the foreign market to directly offer services to local consumers.

 Example: A French bank opens a branch in Mexico to offer financial services to Mexican clients.

Mode 4: Presence of Natural Persons

 Explanation: This mode refers to individuals (such as employees or independent contractors)


traveling to another country temporarily to provide services there. Unlike Mode 2, it is the
service provider who moves rather than the consumer.

 Example: An IT consultant from India working in Singapore for a few months to complete a
project for a client.

These modes are essential for understanding how services are provided in the global market and help
set the framework for international trade policies and agreements.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy