Workshop Exercises

1. REGIONAL WORKSHOP ON INTERNATIONAL TRADE IN SERVICES STATISTICS21-25 November 2016Antigua and Barbuda Workshop Exercises

2. Exercises Exercise 1 • Company in Antigua exports shirts valued at $1,000 (f.o.b) to Dominica for processing with no change of ownership • The company in Dominica adds button holes and return the shirts at f.o.b. value of $1,300 • The company in Antigua exports the completed shirts to St Kitts at an f.o.b value of $2,000 • The goods are cleared at the border by the importer in St. Kitts at the c.i.f value of $2,300. The freight and freight insurance services were provided by John’s trading services in Antigua

3. EXERCICES Cont’d Example 2: What are the BOP entries for the following: A tourist incurs the following expenditure during a holiday in Barbados: -air fare $1,000 -a vehicle $75,000 -attending festivals $25,000 -financial advice from a commercial bank $10,000

4. EXERCICES Cont’d Example 3: The Gov’t of Jamaica receives a grant of $1,000,000 from the EU comprising: - Consulting services (TA) $750,000 -Vehicle and equipment $250,000

5. EXERCISES Cont’d Example 4: • Cuban medical practitioners travel to Grenada to provide free health services support at the Grenada public hospital $10,000 • A patient from St Lucia traveled to Martinique for medical attention in July 2015. The bill of $50,000 was paid by the patient in January 2016

6. EXERCISES Cont’d Exercise 5: Construction services • A&B Construction services in Trinidad won the bid for a $100,000,000 Public sector project in Grenada • Project implementation was spread over 2 years 2014 and 2015 (ratio of 50:50) • 50% of the goods required for the project was imported directly and 50% procured locally • Of the total of $100,000 reported to have been spent on services, it was discovered that $50,000 was in fact compensation of employees

7. EXERCISES Cont’d Exercise 6: Insurance Services Residents of Haiti pay premiums as follows: -$2,000,000 to a resident insurance company -$5,000,000 to a non resident insurance company Receive claims as follows: -$500,000 from resident insurance companies -$2,000,000 from non-resident insurance companies

8. EXERCISES Cont’d Exercise 6 cont’d • In 2015 resident insurance companies in Haiti • received from nonresident policy holders premiums totaling $5,000,000 • Paid claims to non-resident policy holders $1,000,000

9. EXERCISES Cont’d Exercise 7: Financial services • A resident company in Antigua pays FCIB in Antigua fees of $50,000 for financial advisory services provided • A bank in Guyana reports nonresident deposits of $500,000,000 and nonresident loans of $6,000,000

10. EXERCISES Cont’d Exercise 8: Charges for use of Intellectual property • A cultural group in Suriname produces a video of one of its best performances for which it collected $50,000 in Suriname. The video is uploaded on YouTube and there is a charge of $50 for every download • The group is part of a collective association for the rights of performing artists, which collected on behalf of the group $100,000 for download of the video from YouTube globally