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International Trade In Services
Categories: Economics,
Before the publication of the trade in Services Manual, the conventional statistical meaning of international trade in services was that described in the IMF balance of payments Manual, Fifth edition (BPM5), which defines international trade in services as being between residents and non-residents of an economy. This also corresponds very closely to the concept of trade in services in the rest of the world account of the 1993 System of national accounts. Such trade is described in chapter iiI of this Manual. This concept of international trade in services combines with the concept of international trade in goods, to form international trade in goods and services in the BPM5 current account. But, it is not always practical to separate trade in goods from trade in services. Services differ from goods in a number of ways, most commonly in the immediacy of the relationship between supplier and consumer. Many services are non-transportable; i.e. they require the physical proximity of supplier and customer, for example, the provision of a hotel service requires that the hotel is where the customer wishes to stay, a cleaning service for a business must be provided at the site of the business, and a haircut requires that both hairstylist and client be present. For international trade in such non-transportable services to take place, either the consumer must go the supplier or the supplier must go to the consumer. international trade agreements concerning services, in particular those embodied in the General Agreement on trade in Services (GATS), make provision for agreement on suppliers moving to the country of the consumer. To reflect this type of trade, the Manual extends the definition of international trade in services to include the value of services provided through foreign affiliates established abroad, described here as foreign affiliates trade in Services (FATS). Services are also supplied by individuals located abroad, either as service suppliers themselves or employed by service suppliers including those in the host country. A large part of this type of trade in services is covered by the BPM5 and FATS frameworks. .
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Definition / Meaning of
SIMPLE
Categories: Retirement and Pension,
A SIMPLE, also known as a simple ira, is short for Savings Incentive Match Plans for Employees, an employer sponsored retirement savings plan that may be offered by companies with fewer than 100 employees. Employers must contribute to eligible employees' accounts each year in one of two ways. They can make a contribution equal to 2% of salary for every employee, or match dollar-for-dollar each employee's contribution to the plan, up to 3% of that employee's annual salary.A SIMPLE may be set up by establishing an IRA in each employee's name or as a 401(k). Congress sets an annual dollar limit on the tax-deferred amount an employee may contribute, based on the type of SIMPLE it is. Contribution ceilings for SIMPLE-IRAs are lower than for other employer sponsored plans.You may withdraw assets from a SIMPLE without penalty if you are 59 1/2 or older and retired. And you must begin taking minimum required distributions by April 1 of the year following the year you turn 70 1/2 unless you're still working. Taxes are due on distributions at your regular tax rate. You may roll your assets over into another employer plan or an IRA if you leave your job for any reason or retire.Two key differences between SIMPLEs and other employer plans are that your account must be open at least two years before you can withdraw or move the money, and the federal tax penalty for early withdrawal is 25% of the amount you take, rather than 10%.
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