The Basics of How International Services are Supplied and Received by the United States
International services are supplied (top panel) and received (bottom panel) by the United States in one of two ways: trade in services or services supplied through affiliates.
Trade in services can be supplied in the following ways:
- The supplier provides a service to the consumer remotely, such as over the internet or phone.
- The consumer travels to the supplier’s location to consume the service.
- The supplier travels to the consumer’s location to provide the service.
Services supplied through affiliates are services provided by multinational enterprises (MNEs) through their U.S. or foreign affiliates.