Question

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

1) Research and development
2) Education services
3) Banking services
4) International tourism
5) Automobile services

Answer 1

The largest services export of the United States is international tourism, reflecting the growth of the service sector in the economy over the past decades.

Step-by-step explanation:

The largest services export of the United States, which ranks behind only capital goods and industrial supplies in terms of overall exports, is international tourism. Despite the fact that the trade in services is relatively small compared to the trade in goods, the significance of services in the U.S. economy has increased remarkably over the past few decades. In this context, U.S. exports of services were approximately half of the exports of goods in recent years, a substantial increase from one-fifth in 1980. Other leading service industries include healthcare, education, and legal and financial services, reflecting the transition of the U.S. economy from manufacturing to a service-oriented economy.