International Trade in Services.pdf - DSpace at Khazar University

302 International Trade in Services
Engineering standards set at the national level can have a significant influence
on the competitive position of domestic firms. If national standards are not
consistent with international expectations, domestic players may have difficulty
competing in foreign markets. Foreign firms that operate using international
standards will maintain a competitive advantage over domestic firms using outdated
or subpar engineering standards. Policy makers can work with standards
associations to ensure that national firms use international standards and can
therefore compete in foreign markets more effectively.
National or subfederal rules that limit engineering firms to a particular type of
legal entity or joint venture structure may influence a firm’s financial options. Arbitrary
equity limitations can also reduce the financing options available to engineering
firms. Policy makers can examine why particular types of entities are required,
the purpose of the rules, and whether the rules are achieving their objectives. They
can investigate the impact of the rules on the ability of domestic engineering firms
to compete at home and in foreign markets. Consultations with engineers and their
professional associations would help inform such an assessment.
Policy makers can review rules governing nationality and residency requirements,
engineering qualification and recognition procedures, equity limitations,
investment limitations, and so on to determine their influence on the engineering
profession at home and abroad. With a comprehensive assessment, policy makers
can pursue unilateral reform, as well as bilateral, regional, and multilateral negotiations.
(A full examination of such rules and their impact on engineering professionals
in the marketplace is provided below.)
Policy makers can encourage professional bodies to collaborate with their
counterparts in regional markets to promote professional exchanges, undertake
analyses of different approaches to the profession, and investigate regulatory
developments. They can support discussions among regulatory institutions in a
region to address concerns with regard to procurement policies, nationality and
residency restrictions, double taxation, and so on. They can facilitate the
engagement of professional bodies and related government entities in discussions
on cooperation to adjust rules so as to facilitate trade, thereby providing a
greater flow of information about the engineering market, professional opportunities,
and key drivers in the industry. They can commission studies of the
engineering profession, hold public forums, and facilitate links with professional
bodies. Each option will require investment in improved public policy
processes.
Improving access to finance
Engineering firms require financial services attuned to credit extension on the basis
of forward contracts, intellectual property, and probable returns on investment