Question: Electronic commerce (e-commerce) blurs the distinction between a good and a service. Under WTO, goods tend to be subject to tariffs; services are not, but

Electronic commerce (e-commerce) blurs the distinction between a good and a service. Under WTO, goods tend to be subject to tariffs; services are not, but trade in services is limited by restrictions on ‘‘national treatment’’ or quantitative controls on access to foreign markets. For example, a compact disc sent from one country to another is clearly a good, and will be subject to an import tariff as it crosses the national border. But if the music on the disc is sent electronically from a computer in one country to another on the Internet,will it be a good or a service? Customized data and software, which can be put on CD, are usually treated as services. What kind of confusion would you expect with WTO overseeing increased transaction on the Internet?

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