What Are Commercial Services?
Commercial services are professional services that companies bring to other companies or countries to fulfill a commercial need, such as in computer services or research and development aspects of businesses. The reach of commercial services encompasses to almost every economic activity usually in the form of manpower, skills, and knowledge. These multi-functional services are geared to the needs of international and national clientele. The range of commercial services allow economic networks to prosper and is crucial to the function of an economy. So these commercial services also include international worker migration and financial investment.
High Volume Commercial Services Countries
Topping the list of high volume importer of commercial services in the world in 2015 was the United States, doing so to the tune of $469.1 Billion USD. The distribution services industry, logistics, maritime transport, and retail services made up the bigger share of this services import. Second is China paying $466.3 Billion USD worth in value. Modern logistics and transportation, financial services, and information services all figured in the services industry imported in 2015. Germany comes in third, importing services worth $296.3 Billion USD. Commercial companies, academics and independent researchers were among the imported services in 2015 in Germany. The United Kingdom is fourth with $206.1 Billion USD worth of services imported from abroad. Japan with $174.4 Billion USD worth of imported services is fifth. Ireland comes in sixth with $151.4 Billion USD worth of imported services. The Netherlands is seventh with $148.6 Billion USD worth of imported services. Singapore is eighth paying $143.3 Billion USD in imported services. South Korea is ninth paying $112.3 Billion USD worth of imported services. Tenth is Belgium paying $105.5 Billion USD in imported commercial services.
Current Trends and Their Implications in the Commercial Services Trade
According to the World trade Report, the growth of international commercial services trade from 1980 to 2011 has been significant, and significantly outpaced merchandise trade growth over the same period. On average, international trade in commercial services grew by around 8% a year, totaling to around $4 trillion USD in 2011. Demographic growth and transition influence trade patterns and services import demands. High volumes of commercial trade imports in a country may translate to better economic growth, better socioeconomic conditions, and a step up in rank among the world’s economies. However, geopolitical tensions may affect some commercial services sectors in some countries. The World Trade Organization's geographic region data showed a modest 1-6% increase in the services trade in 2014.
WTO Framework of Trade in Services
The four modes of supply in the function of commercial services was based on the World Trade Organization (WTO) framework, namely in Articles 1 and 28 of the General Agreement on Trade in Services (GATS). These four modes are first that cross-border services that provides commercial services via internet from one area to another area. Second is the consumption abroad services, where services are exported to the importing country for tourism or education purposes. Third is commercial presence services, where a business puts up a branch in another area or abroad. Fourth and finally is the presence of natural persons, where businesses acquire skilled workers from another area or abroad.
Nations Importing The Most Commercial Services
|Commercial Service Imports ($US) in 2015