basic-guide-to-exporting_Latest_eg_main_086196

Chapter 9Exporting ServicesIn this chapter . . .• Role of the service sector in the United Statesand in world economies• Differences between service and product exporting• Places where service exporters can find assistanceThe United States is the world’s premier producer and exporter of services. As the largestcomponent of the U.S. economy, the service sector includes all private-sector economic activityother than agriculture, mining, construction, and manufacturing. The service sector accounts for90 million jobs, which is nearly 80 percent of the private-sector gross domestic product (GDP).In the future, the service sector will loom even larger in the U.S. economy. Small and mediumsizedentrepreneurial companies—those employing fewer than 500 employees—overwhelminglylead this service-driven business expansion. More than 4 million small U.S. service companiesaccount for more than 16 million jobs. Although small service companies make up most of theservice sector, many of the most prominent U.S. service exporters are large companies. Sevenof the 30 companies that constitute the widely cited Dow Jones Industrial Average areservice companies.The dominant role that services play throughout the U.S. economy translates into leadershipin technology advancement, as well as growth in skilled jobs and global competitiveness. U.S.service exports more than doubled between 1990 and 2000—increasing from $148 billion in 1990to $299 billion in 2000. Growth continued to $404 billion in 2006, $632 billion in 2012, and $682billion in 2013. Major markets for U.S. services include the European Union, Japan, and Canada.Mexico is the largest emerging market for U.S. service exports.Service Exports with High Growth PotentialTravel and TourismThe largest single category within the U.S. service sector encompasses all travel- and tourismrelatedbusinesses, including recreational and cultural services. The industry is diverse andU.S. Commercial Service • A Basic Guide to Exporting99