service import/export (1 Viewer)

[wgy182]

Is a tourist coming to Australia and spending money an example of a service import or export?

 

[Phaze]

It is a service export when the tourist comes to Australia. A good way of looking at it is if someone from China wants to come to Australia they are buying our tourism by giving us their money. So it's money entering our economy through us selling something overseas.

 

[kiwi703]

Phaze is correct. The best way to distinguish exports/imports (and for that matter, credits/debits in the balance of payments) is to track where the money goes. If Australians are receiving money, it is an export, if we are paying money overseas it is an import. Correspondingly, a credit means money comes into Australia, and debits are when money leaves Australia