International Trade Forum - Issue 2/2005, ©
International Trade Centre
 |
Photo: ITC/S. Lee |
Services contribute to everything a society produces. Even
getting goods to market is heavily linked to services. Take, for
example, a 5-kilo bag of rice exported from Pakistan to Europe. How
does the rice move from the exporter to the consumer?
The answer is through services.
Below are a few of the services involved. Those providing the
ser-vices range from public sector utilities, to transport firms,
to retailers. Because of the many possibilities for specialization
and outsourcing, services allow countries to develop more complex
economies, which boosts their trade competitiveness.
- Energy, telecommunications, water:
Basic services that underpin production, from rice harvest to
accounting to transport.
- Financial services: Finance, expand
and maintain export operations.
- Insurance: Manage risk.
- Accounting: Record income and
expenses for financial reports, and to assist in making business
decisions.
- Legal services: Prepare and enforce
contracts between different parties, e.g., for sale and
distribution.
- Market research: Identify niche
markets and buyers.
- Packaging design: Preserve, protect
and promote the product.
- Quality control and inspection:
Ensure products meet international standards and prove that they
comply.
- Transport and shipping: Move the
product from producer to exporter to foreign buyer and
distributor.
- Retail and distribution: Move the
product from the buyer to the end-consumer.
- Advertising: Encourage the consumer
to know and buy the product.
Contributors: Natalie Domeisen, Sebastian Rodas, Bruce
Shepherd, Bryan Towe