International International Trade in ServicesTrade in Services

国际服务贸易国际服务贸易

International International Trade in ServicesTrade in Services

国际服务贸易国际服务贸易

With the rapid economic development

Goods

Services

Services

Services

Developing trend of trade in

services

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pri mary mi ddl e nowaday

goods trade

servi ce trade

Preface※ With the rapid development of the world service

economy, the core of the international trade is turning from the traditional trade in goods into the one in services.

※ Though China trade in services started in the low

point, it has improved rapidly with great potentiality.

※ In order to enlarge the trade scale, improve the

trade structure in services and promote the world competitive power of trade in services, international trade in services will be a new increase in the will-be economy in our country.

※ Compared with trade in goods, the theory of that in services falls behind

of its practical development.

※ The aim of our class in bilingual education is to adapt to new development

of business and trade in our country.

Schedule: 9 chapters lasting 64hrs

for two semesters 6

6

6

46

4

6

6

4

onetwothreefourfi vesi xsevenei ghtni ne

Usual quiz (40%)One quiz one chapter,

Class interaction, presentation

Final quiz (60%)Oral examination(40%)Final paper quiz(60%)

Examination mode

Chapter one

Introduction to Service Economy （服务经济导论）

Learning objective

Explain the basic concept of international service trade:

※ Service ※ Service industry ※ Service trade

1.Understanding of service

What is service?(1)Service products 服务产品(2)Service industry 服务产业(3)Service occupations 服务职业(4)Service functions 服务职能

Illustration

Goods to satisfy human needs in economics

经济学满足人类欲望的物品

Free goods 自由物品

Economic goods 经济物品

Physical form: goods

实物形态：商品

Nonphysical form: services

非实物形态 : 服务

• Goods can be divided into two kinds:

① free goods to satisfy the desire of

human being. ② economic goods

• Free goods---you don’t need to try your effort to obtain; such as sun, air, sea, mountain.

• Economic goods– you have to show your effort to obtain them, which are so important and limited in this society. They can be divided into two: tangible goods and intangible services.

1.1 Definition of serviceService: “work or duty done for someone” or “An act or job done in favor of someone”

※ History of service definition

1. Before the World War Ⅱ: Definition of services were not clear.

＊ British economist-Adam Smith （亚当 ·斯密， 1723 ～ 1790 ） ＊ French economist— Jean Baptiste Say ( 萨伊， 1767-1832)

＊ French economist— Claude Frederic Bastiat ( 巴斯夏 ,1801-1850)

＊ Karl Marx ( 卡尔 ·马克思， 1818-1883)

2. After the World War Ⅱ: Services have been defined as an activity to sell to be benefited and satisfied.

＊ Marketing expert—Philip Kotler ( 科勒特， 1967)

＊ V.Fuchs (V. 富克斯， 1968)

＊ T.P.Hill ( 希尔 )

＊ Gronroos ( 格鲁诺斯 )

Evolvement of service

1.Adam Smith: service product is inclined to disappear, so it is difficult to reserve

2.Jean Baptiste Say ： Transaction theory

Labor service is one effort. 3.Karl Marx: special value-in-use service is not stockpiled (reserved).

Evolvement of service

4.V.Fuchs: service disappears at the moment of its production. It can be only supplied at the presence of consumers.

5.Hill: service is produced and consumed at the same time; Once produced, the service must be acquired by consumers without warehousing.

• Conclusion:

• Service is a job or a kind of economic activities done by the individuals or social organizations for the customers with the help of some tools, facilities, equipments and mediums;

• it is an activity and benefit provided for individual consumer or enterprise to meet their specific needs, whose production may or may not be related to material products;

• it is the added value for individuals, goods or service in other economic units, and has the value-in-use or utility represented in the form of activities.

1.2 Characteristics of service

▲ Intangibility ( 无形性 ): The shape goods is visual, but the form of

service is invisible. Reason: first, on most occasions, service can not be

touched and felt;Second, the customers’ feelings after being

served is hard to measure or the benefit is felt some time later.

▲ Intangibility ( 无形性 ): This is the basic feature of service

and it is the core and essence of service.

With the development of science and technology, embodied service have come into being.

Example: disc, software, etc.

▲ Inseparability ( 不可分离性 ): The process of consumption is the

process of production. Example: teachers and their students,

doctors and their patients, etc. Exception: long-distance education bank service abroad

▲ Perishability ( 不可储存性 ): The accomplishment of production is the end

of service process. If the service is not in use, the consumers can not enjoy the value of service.

Example: the absent seat of a plane or a restaurant, etc. Exception: cover insurance

▲ Heterogencity ( 异质性 ): The quality of service covers large

elasticity. It depends not only on service suppliers but also consumers.

Example: ① one travel agency to different

tourists; ② one doctor to different patients

▲ Absence Ownership ( 所有权的不可转让性 ): In the process of production and consumption of service, the ownership of any goods is not transferred.

Example: deposit in banks. This is the root of service risks.

Illustration

Heterogeneity异质性

Intangibility无形性

Perishability不可储存性

Inseparability不可分离性

Absence ownership所有权的不可转让性

▲ Features of experiences and trust ( 经验特征与信任特征 ) ：

Different products tend to be expressed in different quality feature, which are evaluated by different experiences and trust of consumers.

Illustration

• • visible regular service special service

服 珠 家 房 汽 餐 度 理 幼 电 法 牙 汽 医 装 宝 具 屋 车 饮 假 发 儿 视 律 齿 车 疗 护 机 服 保 修 stronger features 理 维 务 健 理 on searching

stronger features on experiences stronger features on trusting

Easy to evaluate

Difficult to evaluate

1.3 Classifications of service (6 ways)

★ By tangible degrees of service

The more visible---the weaker service Examples: costume, soap, fast-food

The less visible--- the better service Examples: baby care, law service

Illustration Baby care Education Law services Air travel Fast-food Cosmetics Soft-drinks Costume Candy

Intangible factors

Tangible factors

★ By degree of customers’ involvement

The more participant process of production---the more services.

Examples: cinemas, entertainment centers,

libraries, schools, message and mail services.

★ By realistic effectiveness to consumers

⑴ Additional service( 追加服务 ) ： Example: feasibility study （可行性研究） ,

market research （市场调研） , product design ⑵ Core service( 核心服务 ): It can be divided into face to face service

and long distance service. Example: tour service, internet bank

service and internet shopping service.

★ By functions of service ⑴ Group service: government

services ⑵ Financial service: bank service,

insurance service ⑶ Sale service: goods transport,

goods storage, passenger transport ⑷ Special economic service:

accountant, law, advertisement

⑸ Telecom and information service: telephone, telegram, electronic data ⑹ Construction service: construction scheme, consultant

⑺ Other services: renting, repairing, maintaining, news publishing and printing, etc.

★ By strategy of sales management

⑴ essential service

⑵ relation service ⑶ content service ⑷ supply service ⑸ extending service

★ By comprehensive factors of service

⑴ based on the supply tools ⑵ based on needs of individuals

or enterprises ⑶ based on aim of organizations ⑷ based on customers whether

appearing on the spot

2.Understanding of service industry

Definition: Service industry is the assembly

of economic departments or enterprises that produce or provide various services.

Aim to develop service industry★ To increase the utility value of

goods, surrounding the production, circulation and consumption of physical products.

★ To improve the general quality of the country people.

2.1 Service industry and the third industry

There are great differences

between service industry and the third industry both in the thinking method and theoretical logic.

What is third industry?

●The primary industry: means the departments of products that people can

obtain directly from the nature by the effort of labor.

● The second industry refers to the departments that process the products

from the primary industry.

● The third industry includes all the departments except that from the

above two industries.

Three industriesIndustry Classification

Range of Industry

The primary industry

Agriculture 农业 , animal husbandry 畜牧业 ,forestry 林业 ,fishery 渔业 , huntery 狩猎业

The second industry

Manufacture 制造业 , construction 建筑业 , running water 自来水 ,electric power 电力 , gas 煤气 ,mining 矿业， excavation 采掘业

The third industry

Business 商业， restaurant 餐饮业， storage 仓储业， transportation 运输业， traffic 交通， post-mail 邮政业， telecommunication 电信业 ,finance 金融业， insurance 保险业， real industry 房地产业， renting 租赁业， technical service 技术服务业， occupation introduction 职业介绍， consulting 咨询业， advertisement 广告业， accounting business 会计事务， lawyers business 律师事务， tourism 旅游业， decoration 装修业， entertainment 娱乐业， cosmetology美容业， repairing 修理业， laundry and dying 洗染业， family service 家庭服务业， arts and culture 文化艺术， education 教育， scientific research 科学研究， news media 新闻传媒， press 出版业， physical culture 体育， medical care 医疗卫生， environment hygiene 环境卫生， environment protection 环境保护， religion 宗教， charities 慈善事业， government organization 政府机构， military 军队， police 警察， etc.

→ Different definitions( 界定不同 )

﹟All the economic activities excluding

the first and second industries are called the third industry.

﹟Service industry is decided by whether it supplies or produces all kinds of services.

→ Different objects( 面向对象不同 )

﹟The third industry mostly refers to the domestic economy.

﹟The service industry is facing to both domestic and international market.

→ Different intentions( 含义不同 )

﹟The concept of the third industry implies the traditional economic logic.

It is a single-way relying.

﹟The concept of service industry expresses the modern economic soul.

This shows the mutual relying relationship between the service industry and other economic industries.

The second industry

The primary industry

The secondindustry

The primaryindustry

The thirdindustry

The third industry

Service industry

2.2 Service industry and manufacturing industry

★ Mutual promotion The development of service

industry is based on manufacturing industry.

The development of service industry promote manufacturing industry.

★ Mutual integration ﹟Mixed development inside enterprises Example: American General Electronic Corporation, Lenovo China

﹟Mixed development of industrial chain Example: before-production, in-production and after-production

﹟Mixed development inside the region Example: China Shoe Town in Wen Zhou, China Costume Town in Dong Guan , World flash-lighter kingdom in Zhe Jiang

R&D研发

manufacture制造

Service服务

Products design

产品设计 Distribution 配送 Wholesale 批发retail sale 零售

Repair 修理

Service intermediary

服务中介

Business service

customers商业服务

用户

customers顾客

Private enterprise service to support manufacture

(accounting, law, consultation, software maintenance)支持制造的私人企业服务

（财会、法律、咨询、软件维护等）

Government supporting service (waste water processing, road repairing, education, health supporting, standard,

police, and fire control, etc.)政府的支持服务 （如废水处理、道路维修、

教育、健康支持、标准、警察和消防）

What’s the relationship?1). Service industry accompanies

industrial progress of manufacturing. They exist and develop mutually.

2). Service industry has the relationship of fusion and intergrowth with

manufacturing industry.

2.3 Classifications of service industry

◆ Traditional service industry (3 kinds):※ Life service: (in the range of life consumption) Function: To maintain and promote the individual and family

consumption Example: repairing, catering trade, hairdressing and beauty,

medical care, tour and accommodation, etc.

※ Productive service: (in the range of manufacture)

Function: To impel the development of social

technique, improve the production development, promote the productive efficiency and to maintain the normal operation of production

Example: information consultant, productive

material repairing, scientific and technical research, facility installing, etc.

Productive serviceNo Type 类别 Basic details 基本行业1 Capital service

资本服务类 Bank 银行 , trust 信托 , insurance 保险 , pawn broking 典当， assessment 评估 , investment 投资 , auction拍卖， credit资信， guaranty担保 ,

2 Accounting service会计服务类

Accounting agency 会计代理， audit business审计事务， capital management 资产管理， credit management 信用管理， accounting company 财务公司

3 Information service信息服务类

Exhibition 会展， electronic business 电子商务， strategy consult战略咨询， information consult 信息咨询， brand agent品牌代理， public relation公共关系， advertisement 广告

4 Managing organizing service经营组织类

Enterprise trusteeship 企业托管， logistic 物流， distribution 配送， wholesale 产品批发， goods agency 商品代理 ,supervisor监理， broking 经纪， leasing 租赁， environment protection 环保

5 Research and technological service 研发技术类

Products research 产品研发， technology transfer 技术转让， software development 软件开发， intellectual property exchange知识产权交易

6 Human resource service 人力资源类

Talent recruitment 人才招募， talent training 人才培训， human resource dispose 人力资源配置， occupation ability examination岗位技能鉴定

7 Law service 法律服务类

Lawyer business 律师事务 ,law agent诉讼代理， justice公正， conciliation 调解

※ Sales service: Function: To promote the image & function of

products and to ensure the quality and credit of products by various means.

Example: retail, wholesale, promote sales,

banking, insurance, trust business, etc.

◆ Modern service industry (4 kinds):

※ Producer service (priority): productive business & special service

Example: financial and insurance service, real estate;

※ Circulation service: retail & distributive service

Example: whole-sale and retail, transportation,

telecommunication service, etc.

※ Consumer service: individual service

Example: hotel service, catering service,

entertainment service, tourism service,etc.

※ Social service: public service supplied by government and non-government

Example: health & medical care, education

service, national defense, etc.

Chapter Conclusion

1. Service is a special invisible goods with its added value in the form of activities to satisfy the needs of economic individuals. It is different from the tangible goods in economics.

Compared with the learnt concept:

• Service is a job or a kind of economic activities done by the individuals or social organizations for the customers with the help of some tools, facilities, equipments and mediums;

• it is an activity and benefit provided for individual consumer or enterprise to meet their specific needs, whose production may or may not be related to material products;

• it is the added value for individuals, goods or service in other economic units, and has the value-in-use or utility represented in the form of activities.

2. Relatively to tangible goods, service regularly has the features of

intangibility, inseparability (space-time consistency between production and consumption ), perishability, heterogeneity, and absence ownership.

Among all the above features,

intangibility is the basic one and is the core and essence of service, which derives other features.

3. Service can be divided into several kinds by tangible degree, customers’

involvement degree, realistic effectiveness to consumers, function of service and strategy of sales management.

4.Service industry has different definitions and intentions from third industry but has the relationship of mutual promotion and integration with manufacturing industry.

Chapter Quiz

• Please explain your understanding of service and service industry?

• What are the basic features of service? Please provide examples if possible.

• What are differences between service industry and the third industry?

• What are the relationship between service industry and manufacturing industry?