Question

Some business services have intrinsic value that can be embodied in some tangible form; they can be produced in one country and exported to another. Which of the following is an example of this?

1) Product design
2) Software development
3) Financial consulting
4) Customer support

Answer 1

Software development is an example of a business service with intrinsic value that can be produced and exported as a tangible product. Software embodies the technology and ideas that have significant economic value, surpassing the material costs involved in its distribution.

Step-by-step explanation:

An example of business services that have intrinsic value and can be embodied in a tangible form to be produced in one country and exported to another would be software development. This service translates into tangible products like applications, operating systems, and other software programs that can be sold internationally. While services like financial consulting and customer support involve direct human interaction and may not result in a tangible product, software development culminates in a digital product that can be distributed worldwide via the internet or physical media. Moreover, the value of such software is often in the ideas and the technology involved rather than the physical media that carries it.

Just as in the production of physical goods where the material cost may be lower than the value of the technology or design, in software development, the value is in the programming, functionality, and problem-solving capabilities that go into creating the software. Similarly, to other economic products, people are willing to pay for software not for its tangible aspects but for what it enables users to accomplish. A software product embodies the creativity, efficiency, and utility that can significantly improve operations for businesses and consumers alike, exemplifying the economic impact of service-based products.

Answer 2

Software development is an example of a service with intrinsic value that can be embodied in a tangible form and exported, because it can be delivered in digital or physical media formats. The correct answer is option a.

Step-by-step explanation:

When considering business services that can be produced in one country and exported to another, we are looking at services that can be embodied in tangible forms. While all the options given, such as product design, software development, financial consulting, and customer support, provide value, software development stands out as an example of a service that can be easily converted into a tangible product, such as a digital file or a piece of software that can be sold internationally.

This is despite the intrinsic value of such a service being potentially higher than the physical materials used in the product. Thus, among the options provided, software development is the one that can most clearly be produced and exported.

Software, while intangible as a service, can become tangible when distributed on physical media or downloaded as digital copies, making it easily transferrable across borders. The value of software lies in the programming and intellectual property rather than in the physical form it may take. As technology progresses, we witness that even though the economy has shifted from manufacturing solid goods towards services, certain services like software development can still encapsulate significant value capable of being exported.