ABSTRACT
Enterprises in primary and secondary industries tend to become more specialized as trading within and outside the national economy expands and distances between buyers and sellers increase. Service functions which previously may have been fulfilled by agricultural or manufacturing enterprises with their own resources need to be spun off as markets increase in size and complexity. Given the labor-intensive nature of many service activities, it is to be expected that developing countries in Asia-Pacific region will become increasingly important service suppliers in international markets. The nature of future transborder trade and investment in services in the Asia-Pacific region will be determined by the interplay of technology, markets and political forces. Services have special significance in the Asia-Pacific region because of its diversity, rapid growth and the great distances between its various trade centers. The ethnic, economic and political contrasts of the area can act as barriers to commerce, limiting the rates at which gains from international trade can be increased.
