1_Conceptual Framework of Digital Trade

Question 1

Transformation through Digital Technologies

Answer 1

• Enhanced internet connectivity information exchange
• Reduced costs enabling diversified, voluminous, and rapid in computing power and data storage catalyzing the development of software, advanced technologies, and analytical methods

Question 2

Difference between Digitization and Digitalization:

Answer 2

Digitization:
The conversion of analogue data and processes into a machine-readable format

Digitalization:
The use of digital technologies and data and the interconnections between them, which result in new activities or in changes to existing activities

Question 3

What is Internet Connectivitiy after the OECD?

Answer 3

The percentage of households who reported that they had access to the Internet

Question 4

Impacts of Digital technologies on international trade

Answer 4

• Market access for businesses increases
• Consumer for a wider product range and greater customization options
• Lower costs in storing and sharing informations

Question 5

What is Digital Trade?

Answer 5

Digitally-enabled transactions of trade in goods and services that can either be digitally or physically delivered, and that involve consumers, firms, and goverments (OECD)

Question 6

What is Digital Economy?

Answer 6

Economic activities conducted or facilitaded through digital technologies

Question 7

What are the outputs of digital economy?

Answer 7

E-commerce, digital services, infrastructure

Question 8

Why is it important to have a consensus on the definition or scope of digital trade?

Answer 8

• Different views on the aspects of digital trade
• The diversity of the industries,… => challenging to define a scope
• Fast changes in the technology advancements => complexity

Question 9

Give examples for Digitally ordered transactions in international trade:

Answer 9

• Purchases of applications and in-app online purchases
• Transactions via online bidding platforms

Question 10

What is the only that can be digitally delivered?

Answer 10

Services (over phone, fax, video call,… are included)

Question 11

What is THE GATS?

Answer 11

The General Agreement on Trade in Services (GATS)

Question 12

What are the 4 Modes of Supply in THE GATS?

Answer 12

Mode 1: Cross-border supply (Bsp.: e-learning)
o Takes place, when a service is supplied from the territory of one WTO member into the teretory of another member

Mode 2: Consumption abroad (exchange student)
o Takes place when the service is supplied in the territory of one Member to the service consumer of any other Member

Mode 3: Commercial presence (affiliate)
o Takes place through supply of a service by a service supplier of one Member, through commercial presence in the territory of any other Member

Mode 4: Presence of natural persons (teaching as a KR prof in GER in presence)
o Takes place when a service is supplied by a service supplier of one Member, through [temporary] presence of natural persons in the territory of any other Member

Question 13

Difference between Goods and Services in terms of Digital Trade:

Answer 13

Goods:
o Goods canot be delivere digitally
o Any good can be digitally ordered

Services:
o Services can be delivered digitally
o Services can be ordered digitally

=> Difference is that Good cannot be digitally delivered