Final answer:
The 1997 WTO agreement showcases how services are impacted by FDI, facilitating cheaper and easier management of long-distance economic connections and information-based services over telecommunication networks.
Step-by-step explanation:
The 1997 World Trade Organization agreement opened the telecommunications market to foreign competitors and exemplifies how services are impacted by Foreign Direct Investment (FDI). Telecommunications have significantly facilitated the management of long-distance economic relationships in production and sales, ultimately decreasing the costs of transferring information. This information can come in various forms like computer software, financial advice, and entertainment products, which are easily distributed over telecommunication networks.
Moreover, international agreements and the reduction of tariffs and trade barriers have spurred on a global awareness and facilitated trade between countries. These evolutions are examples of how globalization can influence services. Nevertheless, it's important to recognize that while such agreements promote trade liberalization and expose domestic markets to international competition, they can have mixed effects on local businesses and workers, balancing out by offering consumers access to a diversity of services at potentially lower costs.