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PublicationsDifferences between service delivery methods1-WE and IER
Differences between service delivery methods
A similar service may be committed and treated differently
depending on how it is delivered. It can be seen in the
service commitment schedule of Vietnam when joining the
WTO, the mode of presence of natural persons is
"uncommitted, except for general commitments". Thus,
providing the same type of service, but if using the method
of Supply across borders or Consumption abroad, the supply
will be very free; and if using the provisioning method
through the Presence of Natural Persons, the problem may
become more difficult.
In trade in services or trade in goods, there is a need for
circulation. If in trade in goods, goods are the object of
movement, then the object of movement of trade in services
depends on each mode. In other words, based on the object
of displacement, GATS has divided four modes of service
provision.
In the number 1 method, i.e., Cross-border service
provision, the moving object here is the service provided. In
the e-learning example, it is clear that the service provided is
that the teaching has "run" from country to country via the
internet.
In the second method: Consumption abroad, the object of
transfer of the method is the user of the service. With this
method, the service provider only needs to be in their home
country because the service user will use the service in the
place where the provider is located.
For mode #3: Commercial presence and mode #4: Presence
of natural persons, the objects of displacement are service
providers. Therefore, to distinguish these two modes of
supply, it can be based on the legal status of the service
provider: legal person or natural person. In the Commercial
Presence mode, the service provider is a legal person, while
in the Natural Person Presence mode, the supplier is a
natural person.
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