Inconspicuous
International trade is very important to the growth of the world economy accounting for about 60 per cent of world gross domestic product (GDP). Total world exports amounted to US$21 trillion in 2015. The bulk of it was in merchandise trade. However, trade in services has grown significantly over the years to reach nearly US$5 trillion or 20 per cent of global exports in 2015. Trade is important to Guyana also. About half of Guyana’s GDP comes from foreign trade. Nearly two-thirds of the output of the Guyana economy comes from services but services are not a significant part of Guyana’s export trade. On the other hand, Guyana does import many services which by one estimate amounted to some 16 per cent of total imports in 2015. The issue of trade in services has been around a long time but is not often talked about the way people speak about trade in goods. Indeed, services do not give one the same opportunity to exhibit conspicuous consumption as goods do. Perhaps one of the difficulties about services is coming to grips with what activities qualify for such trade and what activities do not. Many services can easily get mixed up with the goods that they might be associated with. An example of that situation involves computer software which was traded with the computers that were bought. This article will explore some of the issues relating to trade in services and what make trade in services so inconspicuous.
