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India has been constantly negotiating for an expansion in the trade in services via Mode 4 as defined under the General Agreement on Trade in Services (GATS). Consider the following pairings regarding different modes of Services under GATS of the WTO: 1. Mode 1 : Cross-Border Supply of Services 2. Mode 2 : Temporary cross-border movement of a natural person to consume services abroad 3. Mode 3 : Cross-border provision of services via the commercial presence of a company in another country 4. Mode 4 : Temporary cross-border movement of service providers Which of the above are correctly paired?

India has been constantly negotiating for an expansion in the trade in services via Mode 4 as defined under the General Agreement on Trade in Services (GATS). Consider the following pairings regarding different modes of Services under GATS of the WTO: 1. Mode 1 : Cross-Border Supply of Services 2. Mode 2 : Temporary cross-border movement of a natural person to consume services abroad 3. Mode 3 : Cross-border provision of services via the commercial presence of a company in another country 4. Mode 4 : Temporary cross-border movement of service providers Which of the above are correctly paired? Correct Answer All of the above

The correct answer is All of the above.

Key Points

  •  The GATS distinguishes between four modes of supplying services: cross-border trade, consumption abroad, commercial presence, and presence of natural persons.
    1. Cross-border supply is defined to cover services flows from the territory of one member into the territory of another member (e.g. banking or architectural services transmitted via telecommunications or mail); Hence, statement 1 is correct.
    2. Consumption abroad refers to situations where a service consumer (e.g. tourist or patient) moves into another member's territory to obtain a service; Hence, statement 2 is correct.
    3. Commercial presence implies that a service supplier of one member establishes a territorial presence, including through ownership or lease of premises, in another member's territory to provide a service (e.g. domestic subsidiaries of foreign insurance companies or hotel chains); Hence, statement 3 is correct.
    4. The presence of natural persons consists of persons of one member entering the territory of another member to supply a service (e.g. accountants, doctors or teachers). The Annex on Movement of Natural Persons specifies, however, that members remain free to operate measures regarding citizenship, residence or access to the employment market on a permanent basis. Hence, statement 4 is correct.

Related Questions

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Read the passage carefully and select the best answer to each question out of the given four alternatives. The conclusion of World Trade Organizations 11thbiennial ministerial conference at Buenos Aires was worrisome. From an Indian standpoint, there was no loss asstatus quo continues in the most important issue: the right to continue the food security programme by using support prices. But the inability of the negotiators toreach even one substantive outcome suggests that WTOs efficacy is under question. As a 164-country multilateral organisation dedicated to crafting rules of tradethrough consensus, WTO represents the optimal bet for developing countries such as India. Strengthening WTO is in Indias best interest. Perhaps the biggest threat to WTOs efficacy today is the attitude of the US. The worlds largest economy appears to have lost faith in the organisation and hasbegun to undermine one of its most successful segments, the dispute redressal mechanism. This is significant as the US has been directly involved in nearly half ofall cases brought to WTO. Separately, large groups of countries decided to pursue negotiations on e-commerce, investment facilitation and removal of tradeobstacles for medium and small scale industries. By itself this should not weaken WTO. But it comes at a time when there is growing frustration with gridlock atWTO. India did well to defend its position on its food security programme. The envisaged reform package which will see a greater use of direct cash transfers tobeneficiaries will be in sync with what developed countries do. But its important for India to enhance its efforts to reinvigorate WTO. In this context, Indias plan toorganise a meeting of some countries early next year is a step in the right direction. WTO represents the best available platform to accommodate interests of adiverse set of nations. Therefore, India should be at the forefront of moves to fortify it. What is the biggest threat to WTOs efficacy today?
Which of the following facts are not correct in the context of India's relations with the WTO?
1. India has been the founder member of the GATT.
2. India has agreed to abide by the arrangement on the intellectual property rights.
3. Under the trade related investment measures, India has already notified its stand.
4. India has agreed to allow entry to foreign service providers.
5. The Indian Government has amended the Civil Procedure Code for the benefit of foreign service providers.
Select the correct answer
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: India’s telecom watchdog has suggested regulation of all entities dealing with consumer data—devices such as iPhones, operating systems such as Android, browsers like Google’s Chrome and apps such as Facebook, Paytm, Uber or Zomato— by bringing them under licence conditions that apply to telecom service providers until a general data protection law is put in place by the government. Which of the following argument weakens the above statement in the best possible manner? Arguments: I. The Telecom Regulatory Authority of India (Trai) said the framework for protection of personal information is ‘not sufficient’ and that the issue of data ownership, privacy, and security is complex and multi-dimensional. It suggested expanding the ambit of licence conditions governing telcos to all entities handling customer information and empowerment of customers to keep their data secure. II. The telecom watchdog further said that individual users owned their data, or personal information, and entities such as devices were ‘mere custodians’ and do not have primary rights over that information. III. Telcos and internet service providers (ISPs) though welcomed recommendations that sought to bring app makers under the same regulations. However, content providers have been opposed to being brought under more regulation. 
Consider the following statements regarding World Trade Organization (WTO). 1. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. 2. WTO can cut the cost of doing business internationally. 3. All the African countries are the members of WTO. Which of the above statements is/are correct?
Which combination of the following is correct with regard to World Trade Organization (WTO) :
1. WTO initiates peace process among the member countries to enhance international trade.
2. WTO avoids the task of "Settlement of Disputes" among the member countries.
3. WTO administers the "Trade Review Mechanism".
4. WTO cooperates in an appropriate manner with the IMF and the World Bank.
Which combination of the following is correct with regard to World Trade Organisation (WTO)?
1. WTO initiates peace process among the member countries to enhance international trade.
2. WTO avoids the task of 'Settlement of Disputes' among the member countries.
3. WTO administers the 'Trade Review Mechanism'.
4. WTO cooperates in an appropriate manner with the IMF and the World Bank.