Answer to Question 1
D
Answer to Question 2
The data collected on service trade are quite poor. Service transactions are often invisible statistically as well as physically. The fact that governments have precise data on the number of trucks exported, down to the last bolt, but little information on reinsurance flows, reflects past governmental inattention to services. The gathering of information is made substantially more difficult because services are intangible and therefore more difficult to measure and to trace than goods. The lack of service homogeneity does not make the task any easier. In an international setting, an additional major headache is the lack of comparability between services categories as used by different national statistical systems. Insufficient knowledge and information have led to a lack of transparency. As a result, governments have great difficulty gauging the effect of service transactions internationally or influencing service trade. Consequently, international services negotiations progress only slowly, and governmental regulations are often put into place without precise information as to their repercussions on actual trade performance.
