PGDBM (2005-2007) Term-V

Global Marketing of Services

Model Questions

Part-A:

Objective Type Questions

1. Fill in the blanks in the following statements:

(a) At present, services account for 65 percent of global output, 30 percent of global
employment, 60 percent of global FDI flows, and 25 percent of global trade.

(b) In India services account for 60 percent of GDP, 31 percent of employment, 45

percent of FDI inflows, and 50 percent of gross domestic investment.
(c) India has emerged as the 18th largest service exporter in the world and increased its
share in global service exports from 0.6 percent in 1995 to 1.8 percent in 2004.
(d) WTO came into existence on 1 January 1995. Presently, there are 149 Members.
(e) GATS agreement has 29 articles covering all services, and 6 Annexes.
(f) There are 12 broad groups of services, subdivided into 155 sub-sectors.
(g) Among USA, China, Japan and India, China has the highest growth rate of GDP,
followed by India, USA and Japan in the order mentioned.
(h) Among USA, China, Japan and India, India has the highest growth rate of
merchandise exports, followed by China, USA and Japan in the order mentioned.
(i) Among USA, China, Japan and India, China has the highest growth rate of services
exports, followed by India, Japan and USA in the order mentioned.
(j) Among USA, China, Japan and India, India has the highest growth rate of
merchandise imports, followed by China, USA and Japan in the order mentioned.
(k) Among USA, China, Japan and India, China has the highest growth rate of services
imports, followed by India, USA and Japan in the order mentioned.

2. Supporting table: Profile of Services Sectors in USA, China and India

Items USA China Japan India

(a) Real GDP growth rate in 2005 (%) 3.5 9.9 2.8 8.4
(b) Growth rate of merchandise exports (%) 7 25 1.0 27.5
(c) Growth rate of services exports (%) 10 30 12.0 27
(d) Growth rate of merchandise imports (%) 5.5 11.5 2.1 32
(e) Growth rate of services imports (%) 10 30 1 24
(f) Share in global commercial services exports (%) 15 3 4 3
(g) Share in global commercial services imports (%) 12 4 3 3

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 Part-B- Model Questions

2. What are the basic differences between goods and services? What is so distinctive
about services trade as compared with goods trade? (6 Marks)

3. (6 Marks)
(a) What are the services sectors covered in the National Accounts Framework?
(b) How do they differ from the balance of payments (BOP) and WTO-GATS
classifications?
(c) What are the main sources of data on services trade?

4. Choose any service sector and show how each element of the 7-Ps (viz. product,
price, place, promotion, physical environment, process and people) is relevant for its
production and trade. (6 Marks)

5. Do you consider that WTO-GATS principles have inherent bias against the interests
of the developing countries? If yes, give examples. If not, give explanations.
(6 Marks)

6. What are the basic objectives, guiding principles and procedures for negotiations
under WTO-GATS? (6 Marks)

7. Explain principal modes of trade under WTO-GATS. Give examples of different

modes for a particular service sector you are familiar with. (6 Marks)

8. (6 Marks)
(a) Are all services included under GATS?
(b) Indicate broad classifications of services trade under WTO-GATS.
(c) What are the sectors included under the six Annexes dealing with rules and
procedures?

9. (6 Marks)
(a) Which regions and countries are the major sources for service exports?
(b) Which regions and countries are the major destinations for service exports?
(c) Indicate the major factors, which have contributed to the rapid rise of services
production and trade.

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