Sunday, February 5, 2012

What is exported or exportable services? How does one export a haircut or a meal or a ride on a roller coaster?

I keep hearing that the U.S. exports a lot of services. WTF is that supposed to mean?


Is this just trickery devised to make it look like the U.S. exports more than we really do?What is exported or exportable services? How does one export a haircut or a meal or a ride on a roller coaster?
There are many kinds of services:


local services -- like cutting your grass for $10


exportable services -- examples:


-- accounting services: the ca are in New York but the customer is in Argentina


-- Internet site hosting: the site and the computer is in California, but the user is in Norway


-- the best example is buying a song with Itunes: Apple is in California, the song is recorded in UK but the buyer is in Germany.





In a nutshell, a exportable service is a service bought outside the USA.


If a Brazilian girl gets a hair cut in Florida, that does not count: that goes in tourism revenues.What is exported or exportable services? How does one export a haircut or a meal or a ride on a roller coaster?
Even tourism is called the invisible export. if you ignore geography, you can see why. Exported goods go to foreign nationals. Foreign nationals pay for the goods in the home currency of the producer, after exchanging currencies. This is the same for exported services! Only differencess is where the sale occurs. Exported goods go to other countries. Exported services are sold locally to non-locals.

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