Answer 3 A. Problems in trade in services1.

Cross-border supply is defined to cover services flows from the territory of one Member into the
territory of another Member (e.g. banking or architectural services transmitted from one country to
another illegally)
2. Consumption abroad refers to situations where a service consumer (e.g. tourist or patient) moves
into another Member's territory to obtain a service;
3. Commercial presence implies that a service supplier of one country goes to another country to set
the shop(e.g. domestic subsidiaries of foreign insurance companies or hotel chains); and
4. Presence of natural persons consists of persons of one Member entering the territory of another
Member to supply a service (e.g. accountants, doctors or teachers).

3 B. Transfer pricing is the setting of the price for goods and services sold between diff entities within a
company. For example, if a subsidiary company sells goods to a parent company, the cost of those goods
paid by the parent to the subsidiary is the transfer price.
The objectives of transfer pricing are as follows:
1) Maximizing overall after-tax profits.
2) Reducing incident of customs duty payments
3) Circumventing the quota restrictions (in value terms) on imports.
4) Reducing exchange exposure, circumventing exchange controls and restricting profit repatriation so
that transfer firms affiliates to the parent can be maximized.
5) Transferring of funds in locations so as to suit corporate working capital policies.
3 C. Euro is not doing well, after Brexit (Britain leaving euro) and fears of Grexit (Greece leaving euro)

.All nations that operate under the euro system must, by default, havethe same interest rate.

This has created strains on some economies, such as Germany. If its economy slows, the
government cannot lower interest rates tostimulate growth.

Despite using a common currency, all European nations have notperformed equally economically.

While some nations experienced growth in exports, others were indecline.

While some have gained competitiveness, some have fallen behind.

The hope of some toward political unity is still far from the horizon.