What services do we sell abroad?

Excuse my ignorance, but I've never really got this, - what services do we sell abroad?

I'm of a generation where we exported goods, and that I understand, but all I seem to hear about these days is that now we sell 'services.'

How, what, where?

Please will you keep it as simple as you can, but rather than just 'financial services,' could you explain what they actually are? And other things too.

How many of you in Sheffield sell services abroad? Can you explain?

Excuse my ignorance, but I've never really got this, - what services do we sell abroad?

 

I'm of a generation where we exported goods, and that I understand, but all I seem to hear about these days is that now we sell 'services.'

How, what, where?

Please will you keep it as simple as you can, but rather than just 'financial services,' could you explain what they actually are? And other things too.

 

How many of you in Sheffield sell services abroad? Can you explain?

We do.

It involves receiving an instruction from abroad to do something legal (legal service) in the UK or (for now, still) in the EU for a foreign client, because our US (or Chinese, Korean, Indian <etc>) "equivalent" (same firm as us doing same thing we do, but in their own country) representing that foreign client in the first place, is not allowed to act in UK or EU.

So we provide the service (legal) here in the UK (and into the EU from the UK) and bill them. That's the export side.

And then reciprocally, when our own GB clients want the same legal service abroad (US, CN, KR, IN, <etc>), we instruct these "equivalents" (because we are not allowed to act there) and they bill us. That's the import side.

After actual Brexit, we'll lose our ability to work in the EU, so both our GB clients and our foreign equivalents will go somewhere else that still can provide the EU services (any of our "equivalents" in the 27, expectedly IE, FR or DE most likely). We'll still be doing the UK ones and operate on the above reciprocal model.

Very informative, thankyou.

---------- Post added 28-06-2016 at 10:58 ----------

Any more?

I'm sure L00b isn't our only exporter of services.

universities sell education to foreign students

legal services

project management services

other professional services, eg architects

research

testing laboratories

just a few I can think of

Good question - I've never fully understood how what & how we sell services abroad.

One related question, I'd be interested to know the answer to, is why isn't the balance of payments ever referred to on the news - in the same way that unemployment or interest rates are? It seemed, when I was growing up, that the newscaster would frequently talk about the 'balance of payments crisis' in ominous tones.

Having North Sea Oil in the 1980s greatly helped matters - however that won't last forever. After which, will the balance of trade assume greater significance, and will exporting goods and services become so much more important?

One of the key services sold abroad is finance. The role of the City is not to be underestimated in job and wealth creation. I know it isn't a popular thing to say in the light of 2008, but it is a fundamental part of the British economy.

One of the key services sold abroad is finance. The role of the City is not to be underestimated in job and wealth creation. I know it isn't a popular thing to say in the light of 2008, but it is a fundamental part of the British economy.

Indeed it is.

I read an article, which corroborated what I had heard, but never believed, that Britain has more accountants that the rest of the EU countries put together. That is almost the highest number per capita in the world.

Though obviously not every accountant works in the banking sector.

The Uk also has one of the most deregulated banking systems I believe, and so is something of a tax haven. I don't want to get into this on this thread particularly, as it's been done before.

Hyper mentions a niumber of services such as architects, project management,research etc. But surely other countries have enough of these of their own?

I sell my research and consultancy services abroad.

The Uk also has one of the most deregulated banking systems I believe, and so is something of a tax haven. I don't want to get into this on this thread particularly, as it's been done before.

 

Hyper mentions a niumber of services such as architects, project management,research etc. But surely other countries have enough of these of their own?

The UK is an absolute frontrunner in research, globally. The UK Universities are on par, if not better than, the best America has to offer and most countries can only wish for such a strong University sector.

Admittedly there are issues with the anglo-centric measurement of 'success' when it comes to Universities, but having been to many Universities all over Europe and China I can assure you that most are in awe of our quality here.

The UK in general is quite deregulated/market driven compared to most nations. This leads to a good competitive environment for services, those that export well in particular.

Hyper mentions a niumber of services such as architects, project management,research etc. But surely other countries have enough of these of their own?

In the above, you consider these services as commodities (readily equivalent). As a general principle, this is not wrong: an architect is an architect, an accountant is an accountant <etc>.

However, the difference between British e.g. architects and e.g. Romanian or Russian architects may lie in the quality, length and depth of the tuition and experience-gaining model and the strength of professional qualification of Brits relative to the Romanian or Russian ones (-say). In not so many words: Brits are better architects, so people come to them from afar (overseas), whereby Brit architects export.

This applies to my particular services industry, wherein the British professional qualification is still one the highest-regarded globally, and recognised as such by the marketplace, so much commercially (clients) as professionally (jobs): non-EU clients come to UK-based European patent attorneys as much for the lingual compatibility (English) as because Brit EPAs are held in very high regard in terms of professional competence, due to the long-established (and -maintained) 'strength' of the UK national qualification. It's a very hard badge to get, makes many STEM PhDs cry on their 3rd or 4th attempt

When there are countries, including EU ones, which will give you the patent attorney badge for the price of the application form and a 'baby' test, that any of my trainees could walk after 3 months on the job (takes years to get the European and British ones).

Whence we get to export...and they don't

They certainly will have...but would you then be comparing apples with apples, or with tomatoes?

 

In the above, you consider these services as commodities (readily equivalent). As a general principle, this is not wrong: an architect is an architect, an accountant is an accountant <etc>.

 

However, the difference between British e.g. architects and e.g. Romanian or Russian architects may lie in the quality, length and depth of the tuition and experience-gaining model and the strength of professional qualification of Brits relative to the Romanian or Russian ones (-say). In not so many words: Brits are better architects, so people come to them from afar (overseas), whereby Brit architects export.

 

This applies to my particular services industry, wherein the British professional qualification is still one the highest-regarded globally, and recognised as such by the marketplace, so much commercially (clients) as professionally (jobs): non-EU clients come to UK-based European patent attorneys as much for the lingual compatibility (English) as because Brit EPAs are held in very high regard in terms of professional competence, due to the long-established (and -maintained) 'strength' of the UK national qualification. It's a very hard badge to get, makes many STEM PhDs cry on their 3rd or 4th attempt

 

Whence we get to export

Stop idolising STEM PhDs L00b! It's the qualitative social sciences based ones that are tricky!

You are correct in highlighting this distinction though, the British have always been on the forefront of professional development (as in letting professions develop). There is some very interesting literature on this, in particular by two Americans, Abbott and Freidson who both started from the medical profession perspective but broadened it out to explain about 'managerial barriers' to professionalism. Essentially this is the interference of bureaucrats/technocrats on the actual profession, due to the low regulatory nature of the British (historically) the professions here were able to develop their own frameworks and these are leading in the world. Take for example Investors in People, ITIL and so on, the same applies for many other qualifications and recognitions globally.