What is the difference between the import and export of goods and services?

Hello! Commodity import and export and service import and export are two basic components in international trade, which are different in nature, form and treatment. The following will compare you from five aspects:

1. By definition:

Commodity import and export: it involves the international sales of tangible products, that is, the cross-border transfer of physical goods. This includes daily necessities, machinery and equipment, raw materials, food and so on.

Import and export of services: refers to the international transactions of intangible products, such as cross-border provision of consulting services, insurance, tourism, education, finance and other services.

2. Formally:

Commodities are tangible and need to be transported from one country to another by various modes of transportation (such as sea, air and land).

Services are usually invisible and can be completed through network transmission, on-site provision or cross-border flow of service personnel.

3. Trade settlement:

The settlement process of commodity trade usually involves physical documents such as invoices and bills of lading, which is affected by more tariff and non-tariff trade barriers.

Service trade settlement may involve copyright fees, patent royalties, technology transfer fees, etc. And it is less affected by tariffs, but it may face more legal restrictions.

4. Regulations and policies:

Commodity trade policies include import and export tariffs, quota restrictions, anti-dumping duties and other measures.

The laws and regulations of service trade may be related to the cross-border movement of laborers, the protection of intellectual property rights and the national laws and regulations in specific service fields.

5. Measurement method:

The trade volume of goods is usually measured by physical quantities (such as weight and quantity) or the value of goods.

Service trade depends more on the value of goods, and the size of the transaction is expressed by the contract amount.