General Agreement on Trade in Services (GATS) covers four modes of delivery of services in cross border trade. Typical examples of trade in Consultancy Services in four modes of supply are as under:
|Cross Border Services (Mode 1)||Cross border supply of consultancy services using technological means.
For Example:- An Indian Consultant prepares an organization analysis for a USA based client and communicates the same via email.
|Consumption abroad (Mode 2)||Usage of consultancy services in the territory of another country.
For Example: An American client visits India and uses the services of consultancy firm.
|Commercial Presence (Mode 3)||Expansion of a Consultancy firm into a foreign country.
For Example: An Indian consultancy firm establishes an office in USA.
|Movement of natural persons (Mode 4)||Consultants enter into a foreign territory to provide their services.
For Example: An Indian Consultant Provides his services by visiting a client in USA.