Trade in Goods refers to physical products that can be touched and seen, such as raw materials, finished products, machinery and equipment, etc. The transaction of traded goods often involves aspects such as logistics, transportation and inventory management.
Trade in Services refers to non-material economic activities, including finance, insurance, consulting, education, tourism, transportation, communications, etc. Transactions in trade services are primarily based on the provision of technology, expertise and experience and generally do not involve the transportation of physical products.
The difference between trade goods and trade services is mainly reflected in the following aspects:
Materiality vs. Immateriality: Traded goods are physical products that can be touched and seen; while traded services are nonmaterial economic activities, usually based on the provision of technology, professional knowledge and experience.
Transaction method: Transactions of trade goods usually involve aspects such as logistics, transportation and inventory management, requiring actual physical transportation and delivery; while transactions of trade services are mainly conducted through information and communication technology and can be completed online.
Value chain position: Traded goods are usually part of the value chain, involving raw material procurement, production and processing, logistics and transportation, etc.; while trade services are usually at the back end of the value chain, providing support for product sales, distribution and after-sales services.
Regulation and regulation: Transactions of trade goods are usually subject to more supervision and regulation, involving tariffs, quality standards, import licenses, etc.; while transactions of trade services are relatively more flexible, with relatively less regulation and regulation.
