Comprehension

The questions are to be answered on the basis of what is stated or implied in the passage.Choose the most appropriate response that accurately and completely answer the question.
The General Agreement on Trade in Services (the “GATS”),negotiated and concluded as a result of the Uruguay Round of multilateral trade negotiations,when it came into effect in 1995 was the first multilateral agreement covering this important and growing area of trade in services.Article I: 2 of the GATS defines the concept of “trade in services” as “the supply of a service” within one of four defined “modes of supply”:(a) from the territory of one Member into the territory of any other Member (Mode 1-Cross-border Supply);(b) in the territory of one Member to the service consumer of any other Member (Mode 2-Consumption Abroad);(c) by a service supplier of one Member,through commercial presence in the territory of any other Member (Mode 3-Commercial Presence);(d) by a service supplier of one Member,through presence of natural persons of a Member in the territory of any other Member (Mode 4-Movement of Natural Persons).

Question: 1

Identify which of the following is not an example of Cross-border supply(Mode 1)

Updated On: Aug 4, 2024
  • Banking services by a branch office of a Japanese bank operating within the territory of the United States.
  • An enterprise in one Member providing transportation services for waste material from one country being transported into another country for disposal.
  • Transfer of funds from a bank in one country to a financial institution or a customer in another country.
  • A Brazilian law firm prepares a legal opinion for a Mexican client and sends it from its office in Sao Paulo to its client in Mexico via e-mail.
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The Correct Option is A

Solution and Explanation

The correct option is (A): Banking services by a branch office of a Japanese bank operating within the territory of the United States.
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Question: 2

Identify which of the following is/are examples of Consumption Abroad(Mode 2)

Updated On: Aug 4, 2024
  • An Indian citizen travelling from Delhi to New York in order to receive medical treatment.
  • A group of students from Delhi visiting Maldives for spending their vacation.
  • An American student is enrolled in courses at the London School of Economics in London, England.
  • All the above.
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The Correct Option is D

Solution and Explanation

The correct option is (D): All the above.
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Question: 3

Identify the example for supply of services under Commercial Presence(Mode 3)

Updated On: Aug 4, 2024
  • A Mexican engineer travels to Sydney to provide on-site services at a newly inaugurated food processing plant.
  • A French architect prepares plans and drawings in Paris, saves her work on a computer diskette and sends it by courier to her client in Stockholm, Sweden.
  • Legal services provided by lawyers in an office in Hong Kong of a law firm based in Singapore.
  • A Dutch citizen living and working in Amsterdam visits her favourite hairdresser in Paris, France.
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The Correct Option is C

Solution and Explanation

The correct option is (C): Legal services provided by lawyers in an office in Hong Kong of a law firm based in Singapore.
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Question: 4

Identify which of the following is not an example of Movement of Natural Persons (Mode 4)

Updated On: Aug 4, 2024
  • A doctor from India travels to Canada to perform surgery on a patient.
  • An Indian student enrolling for higher studies at the University of Oxford.
  • An architect from India constructing a prestigious building in Dubai.
  • A law professor from India visits the Harvard Law School for delivering a lecture.
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The Correct Option is B

Solution and Explanation

The correct option is (B): An Indian student enrolling for higher studies at the University of Oxford.
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Question: 5

Identify the correct statement:

Updated On: Aug 4, 2024
  • Cross-border supply is similar to trade in goods.
  • Mode 2 concerns services, which have a connection to the international migration of consumers.
  • The third and the fourth modes concern transactions in services, which take place in the consequence of the international migration of the service suppliers.
  • All the above.
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The Correct Option is D

Solution and Explanation

The correct option is (D): All the above.
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