SERVICES' MODES OF SUPPLY: THEORETICAL ASPECTS AND IMPLEMENTATION SPECIFICS IN THE INCONSISTENT PRESENT

Анотація

The significant role of services in modern world trade, international migration of labor and capital, science and technology, information space, creates the need to research services' modes of supply and the impact of the pandemic on the specifics of these modes’ usage. The article is focused on the refinement and improvement of existing services' modes of supply and theoretical aspects of the international trade in services operations; identification of future trends in the service sector and the use of existing supply models. Four trade in services modes of supply depending on the need to move the supplier or consumer are distinguished: cross-border supply, consumption abroad, commercial presence and presence of natural persons. It was found that the existence of trade in services modes of supply is due to the specifics of international trade in services, such as the need for direct contact between supplier and consumer, greater protection by the state compared to trade in goods, impossibility of some services types selling in international markets, regulation by domestic legislation of individual countries etc. Identification of a fifth trade in services mode of supply in which the consumer and supplier move to a third country to trade in services is proposed. It is established that creating of a commercial presence is the most used model. The future growth of services’ trade in the cross-border regime is substantiated as a consequence of the necessity to operate service enterprises during the pandemic and in the post-quarantine period. The increase of tourism services sales in the cross-border mode of supply due to the active introduction of virtual reality technologies and the development of virtual tourism is forecasted. The transition of construction services to cross-border supply due to active development of modular construction and use of the latest technologies such as 3D printers and artificial intelligence is predicted. However, it is emphasized that it is impossible to completely exclude the physical movement of the supplier or consumer in the provision of certain types of services, even with the advancement of technology. The presented study results can be used as a basis for further research into models of trade in services and development of effective services trade policies during quarantine and post-quarantine period.

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