International
Trade in Services
国际服务贸易
With the rapid economic development
Services
Goods
Services
Services
Developing trend of trade in
services
90
80
70
60
50
40
30
20
10
0
goods trade
service trade
primary
middle
nowaday
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
4
6
6
6
6
6
4
6
4
one
two
three
four
five
six
seven
eight
nine
Examination mode
Usual quiz (40%)
One quiz one chapter,
Class interaction, presentation
Final quiz (60%)
Oral examination(40%)
Final paper quiz(60%)
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 service
Service: “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
Perishability
不可储存性
Intangibility
无形性
Absence ownership
所有权的不可转让性
Inseparability
不可分离性
▲ 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
•
•
Easy
to
evaluate
visible
服 珠 家 房 汽
装 宝 具 屋 车
stronger features
regular service
餐 度 理 幼
饮 假 发 儿
护
理
special service
电
视
机
维
法
律
服
务
牙
齿
保
健
汽 医
车 疗
修
理
on searching
stronger features
on experiences
stronger features
on trusting
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
Intangible
factors
Tangible
factors
Baby care
Education
Law services
Air travel
Fast-food
Cosmetics
Soft-drinks
Costume
Candy
★ 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 industries
Industry
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 primary
industry
The second
industry
The third
industry
The primary industry
The second industry
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
Products
design
产品设计
manufacture
制造
Distribution 配送
Wholesale 批发
retail sale 零售
Repair 修理
Service
服务
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.
No
Type类别
1
Capital service
资本服务类
2
Accounting service
会计服务类
3
Information service
信息服务类
4
Managing organizing
service
经营组织类
5
6
Productive service
Basic details基本行业
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,
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
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
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
Research and
Products research产品研发，technology transfer技术转让，
technological service software development软件开发，intellectual property exchange知
研发技术类
识产权交易
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
kinds):
※ Producer service (priority):
special service
productive business &
Example:
financial and insurance service, real estate;
※ Circulation service:
(4
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?