economics medium MCQ

The General Agreement on Trade in Services (GATS) defines four 'modes of supply' for international trade in services. Which mode involves a consumer traveling to the supplier's country to consume the service (e.g., medical tourism)?

  1. Mode 1: Cross-border supply
  2. Mode 2: Consumption abroad
  3. Mode 3: Commercial presence
  4. Mode 4: Presence of natural persons

Answer: Mode 2: Consumption abroad

Mode 2 (Consumption Abroad) covers scenarios where the buyer moves to the seller's territory to receive the service, such as an Indian patient traveling to the US for surgery, or a student studying at a foreign university. Mode 1 is remote delivery (telemedicine), Mode 3 is setting up a foreign branch (FDI in hospitals), and Mode 4 is the professional traveling to the client (IT consultants flying abroad).

Topic International Economics - WTO
Exam Relevance UPSC Prelims, SSC CGL
More economics Questions Back to all questions