Even though both goods and services can be exported, I do not fully understand how services such as maintenance and repair can be exported? As I understand, if you do mechanical works abroad you...
Even though both goods and services can be exported, I do not fully understand how services such as maintenance and repair can be exported? As I understand, if you do mechanical works abroad you have to have your own foreign subsidiary or work in someone else's workshop through some kind of partnership agreement, which would be the a very different internalization method. Thank you for your answer
An export is simply a good or a service that is produced in our country and sold to someone from a different country. As you can see in the link below, many services can be exported. We can even export things like tourism services. This is because people who come to this country and buy tourist services are, in essence, importing those services to their country. This is very similar to the way in which repairs and maintenance can be exported.
Imagine that a Chinese airline buys jets from Boeing. They do not want to set up their own repair and maintenance facilities. Therefore, they regularly have their airplanes serviced at Boeing’s facilities in the Seattle area. These services are, technically speaking, being exported to China. As long as the work is being done by Americans here in the US, those services are being exported. That is how maintenance and repairs can be exported.