ROLE OF TRADE IN SERVICE IN ECONOMIC DEVELOPMENT

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MASTER OF COMMERCE – M.Com First Year (IBO) Solved Assignments for July 2019 and January 2020 Admission Cycles

IBO Tutor Marked Solved Assignment

Course Code : IBO – 01
Course Title : International Business Environment
Assignment Code : IBO-01/TMA/2019-20

Coverage : All Blocks

IBO – 01 International Business Environment Solved Assignment for 2019-20

Q5.)Write notes on the following :

iv) Role of Trade in services in economic development

Services being a 'tertiary' sector and invisible in nature were cut off from the mainstream of discussions at the national and international levels.Trade in services has increased in importance over the last two decades with the advent of globalization. 

Services have gained considerable importance in both developing and developed countries due to following reasons:

• Services is a major contributor to GDP.

• Services is an important source of foreign exchange earnings.

• Services sector provides employment opportunities to the million of people.

• Services play a vital role in the industrialization process and economic development of the countries. A country can think of economic development if there is adequate and efficient provision of producers, services such as banking, insurance, transportation, warehousing and telecommunications.

• Import of services and foreign direct investment in services can be immensely helpful in filling up the infrastructural gaps and providing the needed fillip to the development and industrialization  process especially in developing countries.