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1、International ServicesChapter 151Learning ObjectivesTo examine the important role of services in international business.To understand why trade in services is more complex than trade in goods.To appreciate the heightened sensitivity required for international service success.To learn that stand-alon
2、e services are becoming more important to world trade.To examine the competitive advantage of firms in the service sector.2Differences Between Sales and Goods“a good is an object,a device,a thing;”“a service is a deed,a performance,an effort.”3Links Between Services and GoodsServices may complement
3、goods;at other times,goods may complement services.4Stand-Alone ServicesServices Can Compete Against GoodsTypes of Offerings:Communication services,reservations,car rentals,etc.Food and drink,cars,books,etc.5How Services Differ From GoodsServices are difficult to inventory.For services offerings,the
4、 time of production is close to the time of consumption.Services are more often intangible.Services are often custom-made.Services often require new forms of distribution.6The Role of Services in the U.S.Since the Industrial Revolution,the United States has seen itself as a primary international com
5、petitor in:7The Role of Services in the U.S.In the past decades the U.S.economy has increasingly become a:8The Role of Global Services in the World EconomyThe rise of the service sector is a global phenomenon.Economies of developing countries generally first establish agricultural and manufacturing
6、sectors before entering into the services sector.As more countries enter the sector,the global services business will become more competitive.9Global Transformations in the Services SectorThe rise in services trade is due to changes in the environment and in technology.10Global Transformations in th
7、e Services SectorReduction of government regulation.Technological advancement.11Problems in Service TradeNew problems have emerged in the service sector together with the increase in the importance of service trade.12Problems in Service TradeData Collection Problems.Data is often sketchy.Service tra
8、nsactions are often statistically invisible.Global Regulations of Services.National and economic security issues result in barriers to entry.Additional problems in the performance of services abroadtradition,regulation,etc.13Corporations and Services TradeServices and E-Commerce Easy access to globa
9、l markets.Little-known firms can become known.Electronic business media occurs at different rates in different countries.14Corporations and Services TradeTypical International ServicesBanking and consulting services can become internationally competitive.Insurance services can be sold internationall
10、y.Communication services have excellent success in international operations.Institutions successfully offer international teaching services.Tourism is a major service export.15Starting to Offer Services InternationallyNovices follow the path of the good,if the service is delivered in support of a go
11、od.New marketers search for similar market situations abroad if the service is independent from goods.16Strategic IndicationsWill the service be directed at people or things?Will the service act result in tangible or intangible actions?17Strategic IndicationsServices Aimed at PeopleDirected at Peopl
12、es Minds:Arts Religion ConsultingDirected at Peoples Bodies:Healthcare Fitness Restaurants18Strategic IndicationsServices Aimed at ThingsDirected at physical possessions:Laundry Landscaping RefuelingDirected at intangible assets:Banking Research Investments19Strategic IndicationsGaining Credibility
13、AbroadProviding objective verification of their capabilities.Providing personal guarantees of performance.Cultivating a professional image.20The Role of Personnel in International ServiceCustomer interface is intense.Proper provisions must be made for training of personnel.Major emphasis must be pla
14、ced on appearance.The person delivering the service communicates the overall attitude/value of the service corporation.21Pricing and Financing inInternational StrategyBecause services cannot be stored,there is greater responsiveness to demand fluctuations.Greater pricing flexibility must be maintained.The intangibility of services makes financing more difficult.22
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