This book looks at basic economic tools and their validity and adequacy for analysing services trade issues within the familiar framework of trade negotiations which relies on the GATT tradition (part I). It presents, of each main group of services, the economic characteristics of their production, the principal modes of delivery, the impact of the current international environment, and the existing methods and extent of regulation and protection in industrial and developing countries (Part II). Finally, it examines, through case studies of selected countries and areas, the basic questions that the delegations in Geneva would have in mind as they negotiate a framework agreement. The answers to these questions would suggest the extent of the net gains from liberalization and of the additional benefits that consumers in industrial and developing countries would reap form freer trade in services.