International Trade in Services.pdf - DSpace at Khazar University

Assessing the Potential of Services Trade in Developing Countries 19
examination and gained relevant work experience to become a chartered
accountant.
IT service companies can seek to obtain process-oriented quality certificates
that signal the maturity of internal service production methods. Carnegie Mellon
Software Engineering Institute–Capability Maturity Model Integration certification
is particularly common among leading developing-country exporters. Companies
that deal with sensitive information in the accounting and health sectors
and deliver services through electronic supply often seek to follow procedures that
qualify them for data privacy and security certificates. Construction companies in
advanced economies must comply with national building codes. Finally, different
sectors adopt different guarantees of the services they sell. For example, a retailer
may offer international guarantees of product quality, allow for goods to be
returned within a number of days, offer support services, and so on.
These quality-signaling devices are often useful for small and large players
alike. Many of the standards and certificates are voluntary and provided by and
for the private sector. Because of these tools, though they are voluntary, there is little
policy makers in developing countries can do but comply and provide the
information and any technical assistance required. To attract foreign providers of
services, policy makers may, however, also seek to ensure that these tools are not
used unnecessarily to restrict competition. For example, the implementation of
the applicable international or regional standards on construction materials and
the best practices in building codes lower transaction costs and facilitate integration
in international supply chains. A similar situation holds in accounting, engineering,
IT, and health services. For professional degrees, policy makers can evaluate
whether there is interest among trading partners and, if it makes sense from
a cost-benefit perspective, negotiate mutual recognition agreements on professional
degrees.
Dual standards may be of great interest to developing countries because of
human capital constraints. For example, in the legal profession, paralegals may be
less costly to train and can carry out some of the functions normally provided by
lawyers. There are similar middle-level professionals in the accounting and health
sectors, but, in general, while these professionals serve an important purpose,
there is little evidence in the chapters that they have a significant role in international
trade. This does not mean, however, that they do not or cannot take part in
export-oriented activities.
In addition, the protection of intellectual property rights may help developing
countries attract foreign direct investment in some sectors. For example, in the IT
service sector, software piracy can be a serious threat. Countries that seek to attract
companies with sensitive information systems or with businesses that develop intellectual
property, such as many software product companies, may be more likely to