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1,InternationalServices,Chapter15,2,LearningObjectives,Toexaminetheimportantroleofservicesininternationalbusiness.Tounderstandwhytradeinservicesismorecomplexthantradeingoods.Toappreciatetheheightenedsensitivityrequiredforinternationalservicesuccess.Tolearnthatstand-aloneservicesarebecomingmoreimportanttoworldtrade.Toexaminethecompetitiveadvantageoffirmsintheservicesector.,3,DifferencesBetweenSalesandGoods,“agoodisanobject,adevice,athing;”“aserviceisadeed,aperformance,aneffort.”,4,LinksBetweenServicesandGoods,Servicesmaycomplementgoods;atothertimes,goodsmaycomplementservices.,5,Stand-AloneServicesServicesCanCompeteAgainstGoods,TypesofOfferings:,Communicationservices,reservations,carrentals,etc.Foodanddrink,cars,books,etc.,Intangible,Tangible,6,HowServicesDifferFromGoods,Servicesaredifficulttoinventory.Forservicesofferings,thetimeofproductionisclosetothetimeofconsumption.Servicesaremoreoftenintangible.Servicesareoftencustom-made.Servicesoftenrequirenewformsofdistribution.,7,TheRoleofServicesintheU.S.,SincetheIndustrialRevolution,theUnitedStateshasseenitselfasaprimaryinternationalcompetitorin:,TheProductionofGoods,8,TheRoleofServicesintheU.S.,InthepastdecadestheU.S.economyhasincreasinglybecomea:,ServiceEconomy,9,TheRoleofGlobalServicesintheWorldEconomy,Theriseoftheservicesectorisaglobalphenomenon.Economiesofdevelopingcountriesgenerallyfirstestablishagriculturalandmanufacturingsectorsbeforeenteringintotheservicessector.Asmorecountriesenterthesector,theglobalservicesbusinesswillbecomemorecompetitive.,10,GlobalTransformationsintheServicesSector,Theriseinservicestradeisduetochangesintheenvironmentandintechnology.,11,GlobalTransformationsintheServicesSector,Reductionofgovernmentregulation.Technologicaladvancement.,12,ProblemsinServiceTrade,Newproblemshaveemergedintheservicesectortogetherwiththeincreaseintheimportanceofservicetrade.,13,ProblemsinServiceTrade,DataCollectionProblems.Dataisoftensketchy.Servicetransactionsareoftenstatisticallyinvisible.GlobalRegulationsofServices.Nationalandeconomicsecurityissuesresultinbarrierstoentry.Additionalproblemsintheperformanceofservicesabroadtradition,regulation,etc.,14,CorporationsandServicesTradeServicesandE-Commerce,Easyaccesstoglobalmarkets.Little-knownfirmscanbecomeknown.Electronicbusinessmediaoccursatdifferentratesindifferentcountries.,15,CorporationsandServicesTradeTypicalInternationalServices,Bankingandconsultingservicescanbecomeinternationallycompetitive.Insuranceservicescanbesoldinternationally.Communicationserviceshaveexcellentsuccessininternationaloperations.Institutionssuccessfullyofferinternationalteachingservices.Tourismisamajorserviceexport.,16,StartingtoOfferServicesInternationally,Novicesfollowthepathofthegood,iftheserviceisdeliveredinsupportofagood.Newmarketerssearchforsimilarmarketsituationsabroadiftheserviceisindependentfromgoods.,17,StrategicIndications,Willtheservicebedirectedatpeopleorthings?Willtheserviceactresultintangibleorintangibleactions?,18,StrategicIndicationsServicesAimedatPeople,DirectedatPeoplesMinds:ArtsReligionConsultingDirectedatPeoplesBodies:HealthcareFitnessRestaurants,19,StrategicIndicationsServicesAimedatThings,Directedatphysicalpossessions:LaundryLandscapingRefuelingDirectedatintangibleassets:BankingResearchInvestments,20,StrategicIndicationsGainingCredibilityAbroad,Providingobjectiveverificationoftheircapabilities.Providingpersonalguaranteesofperformance.Cultivatingaprofessionalimage.,21,TheRoleofPersonnelinInternationalService,Customerinterfaceisintense.Properprovisionsmustbemadefortrainingofpersonnel.Majoremphasismustbeplacedonappearance.Thepersondeliveringtheservicecommunicatestheoverallattitude/valueoftheservicecorporation.,22,PricingandFinancinginInte

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