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Differences between service delivery methods



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1-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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