INTERNATIONAL BUSINESS

GLOBAL TRADE TREND AND

STATISTICS

Submitted By;
Amritha K.R (FM-1414)
AlmaBaby (FM-1410)
Aishwarya Jayachandran (FM-1427)
Gokul Dutt (FM-1400)
Neya Joseph (FM-1419)
Anand Balachandran (FM-1404)
Introduction
International trade is the exchange of capital, goods, and services across international
bordersor territories. It is the exchange of goods and services among nations of the world.[1] In
most countries, such trade represents a significant share of gross domestic product (GDP). While
international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber
Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political
importance has been on the rise in recent centuries.
Definition of Global Trade. Global trade, also known as international trade, is simply the
import and export of goods and services across international boundaries. Goods and services that
enter into a country for sale are called imports.

LATEST TREND IN GLOBAL TRADE

Cooperation among countries:
Countries cooperate with each other through international organizations, treaties and
consultations. Such cooperation generally encourages the globalization of business by
eliminating restrictions and by outlining framework that reduces uncertainties about what
companies will and will not be allowed to do. Countries cooperate:
a. To gain reciprocal advantages: Agreements on a variety of commercially related activities such
as transportation and trade that allow nations to gain reciprocal advantages. For example, groups
of countries that agreed to allow foreign airlines to land in and fly over the territories, such as
Canada’s and Russia’s agreements commencing in 2001to allow polar over flights that will save
five hours between New York and Hong Kong. Group of countries have also agreed to protect
the property of foreign- owned companies and to permit foreign made goods and services to
enter their territories with fewer restrictions.
b. To attack problems they cannot solve alone: In addition, countries cooperate on problems they
cannot solve alone, such as by coordinating national economic programs (including interest
rate) so that global economic conditions are minimally disrupted, and by restricting imports of
certain products to protect endangered species.
c. To deal with concerns that lie outside anyone’s territory: Finally, countries set agreement on
how to commercially exploit areas outside any of the territories. These includes outer space,
non- coastal areas of oceans and seas (such as exploitation of minerals), and Antarctica (for
example, limits on fishing within its coastal waters).

Liberalization of Cross- border movements:

Every country restricts the movements across its borders of goods and services as well as of the
resources, such as workers and capital, to produce them. Such restrictions make international
trade cumbersome. Further because the restrictions may change at any time, the ability to sustain
 the global trade is always uncertain. However governments today impose fewer restrictions on
cross- border movements. It allowing companies to better take advantages of international
opportunities. Government have decreased restrictions because they believe that:
a. So called open economies (having very few international restrictions) will give consumer a
better access to a greater variety of goods and services at lower prices.
b. Producers become more efficient by competing against foreign companies, and
c. If they reduce their own restrictions, other countries will do the same.

TRENDS IN INTERNATIONAL TRADE

1) Forced Dynamism:
International trade are forced to adapt to the latest trends which shape the global, political,

cultural, and economic environment. The concept of International trade is a complex, because

the environment in which it operates is constantly changing. Firstly, the businesses are

constantly pushing the frontiers of economic growth, technology, culture, and politics which

also will result in the change of the surrounding global society and global economic context.

Secondly, factors external to international trade (e.g., developments in science and information

technology) are constantly forcing international trade to change how they operate. International

trade will work properly only if it can adapt to the changes easily which is happening in the
environment.

2) Transfer of Technology:
Technology transfer is the process by which commercial technology is disseminated. This will

take the form of a technology transfer transaction, but which will involve the communication,

by the transferor, of the relevant knowledge to the recipient. It also includes non-commercial

technology transfers, such as those found in international cooperation agreements between

developed and developing states. Such agreements may relate to infrastructure or agricultural

development, or to international; cooperation in the fields of research, education, employment

or transport. Thus with the help of international trade the latest technology which a country
possess can be transferred to another country. The use of latest technology found in developed
nations will help the developing countries to do business easily.

3) Growth in Emerging Markets:

The growth of emerging markets (e.g., India, China, Brazil, and other parts of Asia and South

America especially) has impacted international trade in every way. The emerging markets have

simultaneously increased the potential size and worth of current major international trade while

also facilitates the emergence of a whole new generation of innovative companies. These

emerging markets play a significant role in international trade as these markets will help to

increase the revenue of the world trade and develop the developing and under developed
economies.

Volume of global trade

The WTO is forecasting that global trade will expand by 2.4% in 2017; however, as deep
uncertainty about near-term economic and policy developments raise the forecast risk, this
figure is placed within a range of 1.8% to 3.6%. In 2018, the WTO is forecasting trade growth
between 2.1% and 4%. This is up from a very weak 1.3% in 2016, as global GDP growth rises
to 2.7% this year from 2.3% last year.

In India, during January 2017, exports continue to show a positive growth of 4.32 per cent in
dollar terms (valued at US$ 22115.03 million) and 5.61 per cent in Rupee terms (valued at
Rs.150559.98 crore) as compared to US$ 21199.02 million (Rs.142568.31 crore) during
January 2016. Imports during January 2017 were valued at US$ 31955.94 million
(Rs.217557.32 crore) which was 10.70 per cent higher in Dollar terms and 12.07 per cent higher
in Rupee terms over the level of imports valued at US$ 28866.53 million (Rs.194134.02 crore)
in January, 2016.
Merchandise exports and imports of India

Source: https://www.wto.org/english/news_e/pres17_e/pr791_e.htm

In 2016, world merchandise exports were valued at US$ 15.46 trillion, down 3.3% from the
previous year. All regions recorded declines in exports, with the largest drop reported by the
Commonwealth of Independent States (-16.2%). On the import side Europe saw a small increase
of 0.2%, while all other regions recorded declines. The chart shows year-on-year growth in
monthly exports and imports of selected major traders through February. Trade values are
clearly recovering in the early months of 2017, but whether this growth can be sustained
throughout the year remains to be seen. Much of the increase can be explained by weakness in
trade growth in the previous year rather than strong growth in the current year.

Volume of global merchandise exports and imports

The chart shows the volume of merchandise exports and imports by the level of development.
The unusually low 1.3% growth in world merchandise trade volume in 2016 was the result of
several risk factors converging over the course of the year. These weighed on imports of both
developed and developing economies, although the latter were more affected.

Developing economies suffered a sharp 3% decline in imports in the first quarter, equivalent to
an annualized drop of 11.6%, but growth resumed in the second quarter and losses were
recovered by the end of the year. Meanwhile developed economies' imports continued to grow
but at a reduced pace. The weakness of imports was reflected on the export side in slow growth
of shipments from both developed and developing countries.
For the year, imports of developed countries grew 2.0% while those of developing economies
stagnated at 0.2%. Exports recorded modest growth in both developed and developing
countries, 1.4% in the former and 1.3% in the latter.

Source: https://www.wto.org/english/news_e/pres17_e/pr791_e.htm

Contributions to world trade volume growth

Source: https://www.wto.org/english/news_e/pres17_e/pr791_e.htm
 The chart shows the contributions to world trade volume growth by region. Despite positive
growth in its exports and imports, North America was one of the biggest contributors to the
weakness of world imports in 2016. This is illustrated by the chart, which shows regional
contributions to world trade volume growth. In 2015, North American imports added 1.2
percentage points to world import growth of 2.9%, or 42% of the total increase. By contrast,
the region only contributed 0.1 percentage points to world import growth of 1.2% last year.

Asia and Europe were the only regions making significant positive contributions to global
import demand in 2016, with Europe contributing 1.6 percentage points (39% of the total
increase) and Asia adding 1.9 percentage points (49% of the total).

Global Trade and E-Commerce

E-commerce has broken down the geographical barriers and brought together customers across
the globe. Industrial units and business houses in the international trade are in the process of
transition to electronic commerce.

The use of electronic means and the internet can make the process of initiating and doing trade
a lot easier, faster, and less expensive.

With e-commerce applications, a whole range of activities can occur without having buyer and
seller in close physical proximity. In this respect, the internet will likely promote trade much in
the same way as lifting other trade barriers would.

Recent initiative to promote E-commerce in global trade:

1. B20 Summit:

The participants to the summit endorsed this year’s new initiatives, including the G20 SMART
innovation initiative, development of green financing and investment markets and
establishment of the Electronic World Trade Platform (eWTP).
 In Hangzhou, China, recommended to build an Electronic World Trade Platform (eWTP),
which would bring together businesses, other stakeholders, international organizations and
governments to share ideas on making electronic commerce more inclusive.The related
discussions had revolved around how digital technology can help small and medium sized
enterprises (SMEs), thereby making the trading system more inclusive and pro-development.
2. The International Chamber of Commerce (ICC) also recently concluded an event in
collaboration with the WTO and the private sector on the role of trade policy in accelerating the
growth of ecommerce and the digital economy around the world.
Director General of WTO, Roberto Azevêdo, stated that e-commerce is a transformative force
in global trade, supporting growth, development, job creation and inclusion. He further stated
that the developed, developing and least-developed Members of WTO are growing increasingly
interested in e-commerce and the digital economy.
3. ITC actively supports SMEs in acquiring the necessary skills and capabilities to trade through
e-commerce channels.
•E-solutions programme
E-Solutions help enterprises (and in particular SMEs) successfully take part in digital trade by
acquiring necessary capabilities that are not readily accessible, affordable or understood by
smaller enterprises in developing or least developed countries.
•Virtual Market Places (VMP) project
This project strengthens the skills of SMEs in the Middle East and North Africa (MENA) region
to effectively use new technologies to enhance their visibility on international markets and
increase their business and market share.
There are an increasing number of ITC projects which help businesses grow using e-commerce
channels.
Top 10 countries with retail E-commerce

TRADE IN SERVICES
International Trade can be split into two categories: trade in goods and trade in services.
International trade in goods involves the movement of objects between countries and across
borders. A good is tangible object.
International Trade in Services- which cannot be seen or touched. Like Banking Services,
tourism services or telecommunication services. Records the value of services exchanged
between residents and non-residents of an economy, including services provided through
affiliates established abroad. It is measured in million USD and percentage of GDP for exports,
imports and net trade. Trade in services drives the exchange of ideas, know-how and technology
it is restricted to barriers such as domestic regulations.

How Trade in Services take place

Trade in services takes place through a variety of ways e.g. An insurance company in one
country might supply its services like selling insurance policies, in the market of another country
by establishing a commercial presence or direct by electronic means across boarder, A family
might take a holiday overseas.
Size of TIS
Trade in Services accounts for over 20% of world trade. In SAARC region the size could be
even higher in terms of total trade among SAARC countries. In some of the SAARC countries
like India and Pakistan, it accounts for more than 50 % share of their GDP.

General Agreement on Trade in Services (GATS)

GATS was agreed under URUGUAY round of multilateral trade negotiations and came into
being in 1995. It sets out a framework of legally binding rules governing the conduct of world
trade in services. It is supported by a number of specific commitments undertaken by individual
countries. These commitments stop WTO member countries from changing domestic law to
introduce new barriers to entry into these specific markets or modes.

Modes of Supply
The GATS covers governmental measures that would influence trade in any and all services
(excluding services supplied in the exercise of governmental authority). The GATS defines
155 service sectors based on categories developed by the GATT Secretariat, and specifies four
modes of trade in services:

(a) Consumption abroad (supply of services in the territory of one Member to a service
consumer of another Member);
(b) Commercial presence (supply of services by a service supplier of one Member through
commercial presence in the territory of another Member
(c) Presence of natural persons (supply of services by a service supplier of one Member
through the presence of natural persons of that Member in the territory of another Member

Key Statistics and Trends in International Trade

In focus: A bad year for world trade?
International trade statistics have recently been showing unusual trends. After strongly
rebounding from the Great Recession of 2009, international trade has grown at a sluggish
pace that further deteriorated in 2015. Trade statistics for 2015 have been at odds not only
with previous trends but also with respect to the overall economic environment. While the
global economy continued to grow in 2015, world trade declined by about 10 per cent
(chart 1). Negative growth in the value of international trade during a period of economic
expansion has not been recorded since 2001, when the decline in the value of international
trade was only marginal (not even 1 per cent). The sluggish growth of 2012–2014 and the
magnitude of the decline in trade of goods and services observed in 2015 suggest a change
in the dynamics behind the process of international integration. Indeed, the most
commonly used index to gauge globalization trends – the ratio of the value of world trade
over global GDP (GWP) – indicates a decline in economic interdependence. This index
stalled at about 30 per cent between 2011 and 2014 (a level first reached in 2007), and then
fell by about 4 percentage points in 2015. Many other indexes presented in this report are
suggesting a reverse in the fortunes of international trade.
Figure 1 Unusual patterns
On a more positive note, not all trade statistics from 2015 are dismal. Overall growth in
the physical volume of international trade was still positive in 2015 (about 1.5 per cent).
Therefore, at least part of the fall in the value of world trade was just nominal rather than
a real contraction. In other words, while many exporters had to cope with lower prices,
they saw no decline in export volumes. Although positive growth in trade volumes is
consistent with the overall economic trends, there are still reasons to be concerned. To start
with, the growth rate in trade in volumes has been below the overall growth of the world
economy in 2015. This has seldom happened in the last few decades and only during
economic downturns, as in 2001 and in 2009. Second, trade volumes were rather unstable,
showing substantial volatility during 2015 both across quarters and across countries.
Although world trade volumes increased, trade volumes decreased for many countries.
Finally, it is arguable whether the physical growth in international trade can continue in a
deflationary economic environment. The concern is that many exporters may not be able
to maintain their position in the markets for long when facing reduced financial returns.
Factors behind the trade decline of 2015
Unsurprisingly, there have been various factors at work in 2015 to result in such a sharp
decline of international trade. Some of the factors have largely nominal effects, while
others appear to be more structural in nature. The fall in commodity prices and the
appreciation of the United States dollar were the factors contributing most to the nominal
fall in world trade. In particular, oil prices went from an average of more than $100 per
barrel in 2014 to about $50 in 2015. Since energy products represent a substantial share of
world trade, such decrease was substantially reflected in the overall value of world trade.
The decline in the nominal value of trade also resulted by the appreciation of the dollar
against all the major currencies. The trade-weighted United States dollar index appreciated
by almost 15 per cent between 2014 and 2015. As a substantial share of world trade is
priced in dollars, the appreciation of the dollar contributed to the fall of the international
prices of goods. This has affected the value of international trade because the same
volumes of goods can be purchased with fewer dollars.

Figure 2 Trade growth in sectors

Deflationary factors can explain only some of the trade collapse of 2015. To better put the
peculiar trends of 2015 in context, one needs to consider the fact that the statistics on
volumes of trade were below historical standards. In particular, while export volumes from
developing countries had been growing at rates of more than 10 per cent per year between
2003 and 2008, the figure for 2015 was about one per cent. Moreover, volumes of trade
fell for many countries both in terms of imports and exports. Some of the major economies,
including the United States, China, Japan and India, saw a contraction in exports not only
in values but also in volumes. Another reason why nominal factors cannot explain the full
extent of the trade collapse of 2015 is that the trade downturn involved not only primary
products (which declined by more than 33 per cent) but also intermediates (10 per cent
decline), and capital and consumer goods (about 4 per cent decline). A similar argument
suggesting that there have been more than deflationary factors at play in 2015 can be shown
by the changes in values of trade across economic sectors (chart 2). In numbers, the value
of international trade in energy products fell by about 37 per cent in 2015. This contributed
to more than 40 per cent of the overall decline in international trade. Another 10 per cent
were also directly linked to commodities (mining and at least part of agriculture). However,
this still leaves about 50 per cent of the decline in world trade related to manufacturing and
services. In these sectors, a weaker demand and the transformation of production processes
has likely played a relatively greater role.
1. Trends in international trade
International trade largely relates to physical goods. Although increasing, trade in
services accounts for a much lower share. In 2015 world trade in goods was valued at
about $16 trillion, while trade in services accounted for almost $5 trillion. Trade in
both goods and services promptly rebounded to reach pre-crisis levels by 2011.
International trade in goods declined substantially in 2015, while trade in services
was more resilient.

Figure 3 Values and growth rates of world trade in goods and services
International trade can be broadly distinguished between trade in goods (merchandise) and
services. The bulk of international trade concerns physical goods, while services account
for a much lower share. World trade in goods has increased dramatically over the last
decade, rising from about $10 trillion in 2005 to more than $18.5 trillion in 2014 to then
fall to about $16 trillion in 2015. Trade in services greatly increased between 2005 and
2015 (from about $2.5 trillion to almost $5 trillion). The value of international trade of
both goods and services declined substantially in 2015 (figure 1a). Following the strong
rebound in 2010 and 2011, export growth rates (in current dollars) are now at much lower
level than in the pre-crisis period and were negative for 2015, both for developing and
developed countries (figure 1b).

Since 2005 the volume of international trade of goods has increased dramatically.
However, growth has slowed down significantly in the last few years and virtually
stalled in 2015. In particular, while export volumes from developing countries had
been growing at rates of more than 10 per cent per year between 2003 and 2008, the
figure for 2015 was about one per cent. Moreover, volumes of trade fell for many
countries both in terms of imports and exports, including in China.

Figure 4 Volumes of international trade in goods

The volume of international trade in goods has increased dramatically in the last 10 years
(Figure 2a). In spite of the financial crisis of 2009, developing countries as a group have
almost doubled the volumes of trade in goods since 2009. While import volumes have been
growing relatively more than export volumes for developing countries, the opposite has
happened in regard to developed countries. The relatively larger increase in the volumes
of imports can be explained by the increase in consumer demand in developing countries.
Growth in trade volumes has slowed down substantially in the last few years, especially in
regard to developing countries. In 2015, volume growth was negative in the case of China,
both in relation to imports and exports (Figure 2b). Developed countries' trade volumes
continued to increase, while trade volumes for developing countries stalled, both in regard
to imports and exports.

The value of trade in goods is virtually equal in developing and developed countries.
On the other hand, about two thirds of trade in services originated from developed
countries. BRICS account for an important share of trade in goods and services.
LDCs continue to account for a very small share in overall trade. In 2015 the value
of world trade has declined both for developed and developing countries.
Figure 5 Values of trade in goods and services by region
Developed countries' relative importance as suppliers in international markets is declining.
Still, they account for about half of the value of exports of goods and about two thirds of
exports of services. In 2015 developed countries' exports of goods was about $8 trillion
(figure 3a), while that of services added up to about $3 trillion (figure 3b). In 2015,
developing countries' trade sum up to about $8 trillion in regard to goods and about $2
trillion in regard to services. In 2015 BRICS exported about $3 trillion in goods and about
$500 billion in services. LDCs' contribution to world trade remains minimal, although
some increases in exports and imports of these countries have been recorded over the past
decade.

A very large part of world trade is clustered around three regions: North America,
Europe and East Asia. Other regions' contribution to world trade is much lower.
During 2015 trade declined in all regions across all trade flows, however with some
differences. Trade flows declined the most in relation to the transition economies.
Trade from and to North America has was relatively more resilient.
Figure 6 Trade flows across regions

The trade network map (Figure 4) illustrates the importance of trade between and within
regions, as well as the trade decline between 2014 and 2015. The width of the
corresponding lines reflects the magnitude of trade in 2015, whereas the size of the nodes
reflects total trade for each of the regions. The colours of both the lines and the nodes
reflect percentage drops in the value of trade between 2014 and 2015, darker colours
indicating greater declines. As of 2015, world trade continues to be largely concentrated
in three main regions: North America, East Asia and Europe, with a large share of trade
being intraregional. In 2015, trade declined in regard to all regions and all bilateral trade
flows. However, the value of trade declined substantially more for the transition
economies, Latin America, sub-Saharan Africa, and for Europe, especially in regard to
trade within the European Union. International trade was relatively more resilient for East
Asia and North American countries.
International trade in goods is increasingly linked to imports and exports of
developing countries. South– South trade has promptly rebounded from pre-crisis
levels, and reached almost $5.5 trillion in 2014. In 2015 it declined to about $4.6
trillion. Among the widespread trade downturn of 2015, developing countries' trade
with China has been more resilient, showing increases in most cases.

Figure 7 Trade in goods between/within developed and developing countries

The increase in world trade between 2004 and 2014 was largely driven by the rise of trade
between developing countries (South–South) (figure 5a). By 2014, the value of South–
South trade had reached almost $5.5 trillion, a magnitude close to that of trade between
developed countries (North–North). The substantial decline in trade in 2015 was evenly
widespread between the trade flows of developing and developed countries. Figure 5b
denotes the contribution of South–South trade over total trade and further decomposes it
among intraregional flows related to China and other South–South trade. The significance
of South–South trade flows for developing countries is evident when considering that in
recent years, they represented more than half the trade of developing country regions
(imports and exports). South–South trade share varies by region, from about 40 per cent in
Latin America to almost 70 per cent in South Asia and East Asia. Although a certain
proportion of South–South trade encompasses intraregional flows, an important part
involves trade with China. Since 2005, China has become an increasingly important
partner for all other developing country regions. Trade with China more more resilient in
2015, while a large part of the trade downturn was related to other South–South flows.
Although they experienced a consistent decline in 2015, intermediate products still
represent a substantial part of world trade (about $7 trillion in 2015). During 2015
trade in primary products declined substantially due to lower commodity prices and
now stands at about $2.5 trillion. Trade in consumer and capital products was more
resilient, falling slightly in 2015. These flows were valued at about $4 trillion and $2.5
trillion, respectively. Differentiated by broad category, world trade in goods is largely
comprised of manufacturing products (about $12.5 trillion). Trade in agriculture,
although relatively small, was more resilient to the trade downturn of 2015.

Figure 8 Values of world trade in goods by stage of processing and broad category
International trade in goods can be differentiated by stage of processing, depending on
their intended use along the production chain. Goods are therefore classified as primary,
intermediates, consumer and capital (the latter comprising machinery used for the
production of other goods). Goods can also be differentiated by broad category, including
natural resources, agriculture and manufacturing. With regard to the stage of processing,
although there was a substantial contraction in 2015, intermediate products continued to
make up the bulk of world trade (Figure 6a). Trade in consumer and capital products
represent another important share of world trade. In 2015, the value of trade in these two
categories declined, but only marginally so. Trade in primary products was greatly affected
by the 2015 trade downturn, as in 2015 their value was at about $2.6 trillion. With a value
of over $12 trillion in 2015, trade in manufacturing goods held a dominant position over
trade in natural resources and agricultural products. Trade in agriculture was somewhat
more resilient than the rest of world trade (Figure 6b).
Trade related to developed countries remains an important part of international
trade, especially in relation to imports. Participation in international trade varies
significantly among developing regions. BRICS countries account for an important
part of developing countries' trade, especially with respect to trade in intermediates
and exports of consumer products. The participation of other developing country
regions in world trade, both as importers and exporters, is more limited.

Figure 9 Values of world trade in goods by region, stage of processing and broad category
Developed countries account for the bulk of world trade, both in terms of goods
differentiated by stage of processing and broad category (figure 7a, b). Besides other
developing country regions, a significant amount of trade is linked to BRICS, especially
in relation to the trade of intermediates and manufacturing. They also tend to import few
consumer goods while exporting a relatively large share. Developing countries tend to
export more natural resources than they import, unlike developed countries. LDCs only
represent a small share in all types of goods, with a larger share in the exports of primary
products and the imports of manufacturing goods.

With almost $2 trillion traded, chemicals represent a substantial share of world trade
in goods. Other significant sectors include machinery, communications equipment
and motor vehicles. In 2015, the value of international trade shrank in all sectors, but
more so in the energy categories (oil, gas, coal and petroleum products). During the
last decade, export market shares have moved to the advantage of developing
countries in all sectors and more so in regard to communications equipment, non-
metallic minerals and machinery.
Figure 10 Values of world trade in goods by sectors
Figure 8a displays the value of world trade in 25 categories of goods. In terms of value, a
large amount of world trade relates to energy products (oil, gas, coal and petroleum
products), chemicals, machinery, communications equipment and motor vehicles. In
contrast, light manufacturing sectors, including textiles, apparel and tanning, comprised a
much smaller share of world trade. Agricultural sectors – which include food, vegetable
and animal products, as well as oils and fats, and tobacco and beverages – accounted for a
total of over $1.5 trillion of trade flows, or less than 10 per cent of international trade.
While the value of trade increased in all sectors between 2005 and 2014, it sharply fell in
2015, especially in energy products and basic metals. During the last decade, developing
countries' presence in international markets has increased substantially compared with
developed countries. Their export market share has increased across all sectors (figure 8b),
and in particular in machinery, non-metallic minerals and communications equipment.

World exports of services are mainly dominated by transportation, travel and

business-related services. Trade in services greatly increased during the last decade
across all categories of services. Trade in most categories of services has been
relatively reliant upon the 2015 trade downturn, the only significant decline being
recorded in transport services and other business services. Although developing
countries increased their share of trade in services during the last decade, developed
countries remain the main exporters in all sectors except construction. Developing
countries are also becoming important suppliers to international markets with regard
to travel and transportation as well as computer and information services.

Figure 11 Trade in sectors

With regard to services, travel and other business services represent the largest sectors,
amounting to more than $1 trillion each in 2015 (Figure 9a). Other important sectors
include transport, telecommunications, computing and finance- related services. Since
2005, the value of trade has increased in all sectors. With exception of transport and other
business services, trade in most of the other categories of services has been resilient to the
trade downturn of 2015. Figure 9b depicts the share of global exports of different service
categories pertaining to developed and developing countries, and their change between
2005 and 2015. Although developed countries still account for the largest part of exports
of services, the export market share has been shifting to the advantage of developing
countries in most sectors (Figure 9b). Two exceptions are intellectual property and goods-
related services, the latter still originating on the whole from developed countries.