Economics · International Trade
Under the General Agreement on Trade in Services (GATS), the classification known as 'Mode 2: Consumption abroad' refers to a trade scenario where:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Individual service providers or professionals move temporarily to another member's territory to deliver a service, such as IT professionals working on-site.
- 2A service provider of one member establishes a territorial presence in another country, such as a foreign bank setting up a subsidiary branch in India.
- 3The service consumer moves to the service provider's country to obtain the service, as seen in the case of medical tourism.✓
- 4A service is delivered remotely from the territory of one member into the territory of another, such as Indian IT services being provided to US clients.
Correct answer
The service consumer moves to the service provider's country to obtain the service, as seen in the case of medical tourism.
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