Exporting Services Promises To Be The New Frontier Of Global Trade

#News(General) [ via IoTGroup ]

Pix Moving, a tech startup based in the Chinese city of Guiyang, is preparing to sell self-driving vehicles in the U.S. without actually exporting them.
As science fiction-like as it seems, Pix Moving is but the latest step in the ongoing evolution of the global trade in services.
It is frequently said that personal services like a haircut simply cannot be exported; and the differences in the costs of these “non-tradable” services are the justification for making the purchasing power parity adjustments when comparing GDP between countries.
However, as described by Richard Baldwin in his book titled: The Globotics Upheaval: Globalization, Robotics, and the Future of Work, advances in technology are rapidly breaking new ground in exporting services.
Pix Moving and its business model are part of this vanguard of an unprecedented era in the global economy that will increasingly be dominated by the trade in services.
Recent data shows the trade intensity (defined as exports as a percentage of gross output) has been increasing for the service industries in the last decade.
In that year, making the necessary adjustments, it appears that the value of global trade in goods is matched by the value of global trade in services.
In this context, countries that aspire to succeed in the global economy dominated by the trade in services will need to develop capacities different from those needed for trading physical goods.
From the perspective of trade in services, a supportive and dynamic digital business environment in the domestic economy of a country is a prerequisite to succeed globally.
Research by the Fletcher team defines “digital businesses” as those that have a digital platform as a core element in its business model, much like Pix Moving described above.
These four platforms collectively capture the ways in which businesses are being transformed, and how services are being traded domestically, and, increasingly, globally.

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