The next important group of current account items are services, which can be considered either separately or as part of a broader category of goods and services.
Services – a group of items of the current account of the balance of payments, including transport services, travel and a number of other services (communications, construction, insurance, financial, computer and personal services, etc.) provided by residents to non-residents and vice versa.
In almost all countries, the most significant category of international services is transport services. These include all types of transport services – sea, rail, air, road, pipeline and other modes of transport, including transportation by land, inland waters and outer space – carried out by residents of one country for residents of another country. The bulk of traffic is carried out by transport companies. In some cases, the transport company may operate outside the economic territory. the country in which she is resident. The cost of transportation is calculated on the basis of the fact that exports and imports are shown in the balance of payments on the basis of fobs, i.e. excluding the cost of freight and insurance of transported goods. Transport services for the import of goods provided by a non-resident company are shown by debit, i.e. as payments for services. On the contrary, transport services related to the export of goods that are provided by a resident firm to a foreign buyer are shown on credit, i.e. as receiving payments for services rendered. The category of transport services also includes the rental of transport equipment together with the crew for the purpose of transporting goods or passengers, as well as related services for the storage and packaging of goods, wiring, towing and cleaning of vehicles.
The article of travel, which is sometimes called tourism, covers goods and services purchased in a given country by visiting non-residents who have been in its territory for less than one year. International transportation of tourists belongs to the article of passenger transportation. Persons performing military service in the territory of other countries, working in diplomatic missions, participating in production activities in the territory of this country are not considered visitors, even if they have been in the territory of the country for less than one year. Visitors are considered, even if they stay in the country for more than a year, persons who are patients of medical institutions, as well as students. All their expenses, including tuition fees, medical care, rental housing, are included in the travel of the balance of payments account.
Trips are divided into business and personal. The article of business travel covers the travel of persons traveling to foreign countries to carry out economic activities there – the sale of products, market research, trade negotiations, participation in missions, participation in adjustment work, etc. These include civil servants on business trips, employees of private companies traveling outside the country where their company is a resident, employees of international organizations. A trip is considered personal if people traveling abroad do not pursue business goals: they go on vacation, carry out religious pilgrimage, participate in sports competitions, etc. The most common goods and services, the purchase of which is fixed in the travel article, include hotel accommodation, meals in restaurants, buying tickets for entertainment programs, purchasing gifts and souvenirs.
Other services include all other services listed in Table 2.1, with the exception of transport and travel services. Communication services cover telecommunications services, including the transmission of audio information, images and other information flows by telephone, telex, telegraph, radio broadcasting, e-mail, satellite and facsimile communications, as well as postal and courier services, including the collection, transportation and delivery of letters, newspapers, periodicals, parcels, parcels, parcels, etc. Construction services include the construction of facilities and installation of equipment by residents abroad and on the contrary, the value of goods imported for the construction of enterprises is shown not by the import account of goods, but by the item of construction services.
Insurance services include various types of insurance provided by insurance companies of a given country for foreign partners, including insurance of foreign trade cargoes, insurance against accidents and accidents, civil liability insurance, medical insurance, etc. Financial services include all intermediary and auxiliary services provided by residents of one country to non-residents, including payments for the provision of credit lines, financial leasing, operations with Computer and information services cover operations in which a resident provides services for processing data and information messages to a non-resident: creation and storage of databases, real-time processing of databases, consulting in the field of computer equipment and equipment, provision of Internet services. Royalties and royalties cover the exchange of payment flows between residents and non-residents for the use of patents, copyrights, trademarks, licenses, know-how.
Other business services include the resale of goods abroad by wholesalers, brokers and dealers, the sale of goods on ships and aircraft, the resale of goods to third parties. Operating leasing means renting equipment from a resident by a non-resident and renting out (charter) ships and aircraft and other transport equipment without a team and crew. The article “various business and professional services” includes legal and accounting services, advertising services, research work, architectural and engineering services, etc. Services to individuals in the field of culture and recreation provided by residents of one country to non-residents include payments and income related to the creation of feature films, radio and television programs, recording of musical works, remuneration of actors and directors. Non-State services, which are not assigned to other categories, include all other foreign economic operations of government bodies, including foreign trade operations of embassies, consulates, military and other missions (purchase of cars, furniture, office equipment, foodstuffs), as well as payments related to the multilateral settlement of military conflicts and the presence of peacekeeping forces, such as UN troops, in the country. Many countries show under this item the cost of purchasing military equipment abroad.