Abstract

12.1 Rapid technological advances in the past few decades in transport, telecommunication, computer, and information services, including the development of the Internet and electronic commerce, and innovations in creation and packaging of financial instruments, combined with an increased trend towards globalization, have resulted in significant cross border exchanges at more distant locations and access of business companies to wider markets. Better communication and transport have also facilitated the movement of people for the purposes of tourism, migration, employment, and trade. These phenomena have resulted in an explosive development of service industries and an unprecedented growth in the volume of international trade in services, including in the context of international investment. Currently, services constitute about one-fifth of worldwide trade in balance of payments terms.