6. Leading Service Exporters - 2007 Slide Top 10 Exporters Billions USD % Contribution United States United Kingdom Germany France Spain Japan China Italy India Ireland Australia (24) 456.4 273.0 205.8 136.7 128.3 127.1 121.7 110.5 89.7 89.0 39.7 13.9 8.3 6.6 4.2 3.9 3.9 3.7 3.4 2.7 2.7 1.2 WORLD TOTAL Source: UNCTAD (2008) 3,291.5 100
accounted for 67% of world GDP in 2006 (United Nations Publication 2008).Also of note, services made up 50.8% of GDP in developing countries in 2006. 3. Exported services accounted for 72.9% of GDP in developed countries in 2006
> 2.5 times growth
The United States, the United Kingdom, and China were Australia’s largest export markets for services, accounting for approximately AU$14.4 billion in 2007, a third of Australia’s total service exports (DFAT 2008). In terms of economic groupings, member economies of APEC and OECD accounted for the majority of Australian service exports in 2007. Australia exported $28.056 billion to APEC economies (58.4 per cent of total service exports), and $23.881 billion to OECD members (49.7 per cent)
Consistent with the global trend, service exports remain an important component of Australia’s international trade. The total value of service exports was AU$48 billion in 2007, an increase of 9.4 per cent over the previous year (DFAT 2008). Australia’s service exports have, in fact, almost doubled in the past 10 years and have grown more rapidly than agriculture, mining and manufacturing exports since the mid-1980s (DFAT 2006, 2007a, 2008). However, the average growth rate of Australian service exports during 2002-2007 was 6 per cent per annum, slower than that of global service exports Australia’s exports of services have benefited from a wide range of contributing factors, ranging from rising incomes and changing preferences, to technological advances, deregulations and improved market access. First, the global market for services has experienced exceptionally strong growth . Second, a lot of trade barriers to exporting have been lowered and/or removed after the Uruguay Round of GATT negotiations and the opening of previously closed markets. Third, there is an existing high recognition of Australian expertise in many overseas markets, especially in terms of the quality of services. Fourth, distance has become less critical for international marketers, as advances in technology make national borders less significant. Fifth, many services are embedded in physical products and are consequently exported with those products, making it a lot easier for the service exporter to enter that market. Finally, all Australian exporters have access to a vast range of resources provided by Austrade.
Transportation services and travel services, which included business-related travel, education-related travel, and other personal travel, accounted for more than 70 per cent of total services exports in 2007 (Figure 2.7). Exportations of other commercial services were valued at AU$12,836 million (DFAT 2008).
This study undertakes an integrated theoretical approach, which has been utilized in several international business studies by incorporating two theories in the literature, including transaction cost economics and relational contracting theory. The chosen research method was in-depth face-to-face interviews with 10 service firms represented a range of industries , utilising a key informant approach. The interviewees were chief executive officer, managing directors, general managers, or other senior staff within the company that were very familiar with the firm’s international operations. Each interview lasted around 1-1.5 hour. The interviews were also semi-structured, enabling the researchers to cover a specific list of topics. Industries
Host: jobs, nation’s competitiveness index, country image Service exporters, especially those in the early stage of internationalisation, should also take advantage of their home government’s export assistance programs as a form of resource to undertake market research, attend trade shows, and identifying market potential. In addition, service firms are also encouraged to invest a concerted effort in strengthening the industry-based associations to which they are associated, in order to better promote their common interests and build business networks for future success.
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