Briefly on the Similarities and Differences between Trade in Goods and Service Trade

Briefly on the Similarities and Differences between Trade in Goods and Service Trade

Same:

1, Buyers and sellers belong to different countries

2, Seller needs to go through the export procedures

3, Import procedures

4, The parties to the sale to comply with their respective countries and the other countries of the law

Difference:

1, Physical foreign trade is tangible products

2, Service foreign trade without tangible goods

3, Trade in services can be delivered through the network, etc., and physical trade must be entrusted to logistics companies.

4, Physical trade there is the risk of logistics links, and service trade is no logistics risk.

5, Physical trade FOB and CIF differences, and service trade are basically the same.

Relative to the trade of goods, trade in services has four basic characteristics:

(1) Production and consumption at the same time. The service is a two-way activity. The formation of the service must include two subjects: the service of the consumer and the service worker. Service production and consumption of the simultaneous decision to leave the service provider, the service consumption can not be carried out. While the production and consumption of services if not in the same occasion at the same time meet, the service production and consumption is also difficult to carry out.

(2) Non-storage. After the goods are made from the field of production, they are temporarily placed in the warehouse or placed in the counter waiting for future buyers before entering the temporary state of the consumer. And service products once produced, do not need to be stored, but immediately consumed, or immediately into the consumer areas.

(3) Intangible. Service is a combination of tangible facilities, products, and intangible connotation, quality, culture formed by the complex.

(4) The uncertainty of quality standards. Service skills and service attitude is often due to people, because of time, vary, consumers of different situations will also cause the quality of service differences.

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