Tendencies of Trade in Business Services in Visegrad Countries

Abstract

Rapid changes in technology, integration and specialization of individual economies reinforce trade motives and the consequences of integration into the world trade system. The Visegrad countries (Czech Republic, Hungary, Poland and Slovakia) have undergone fundamental structural changes in recent years, characterized at the turn of the century mainly by the opening of the economy and the influx of foreign direct investment into the industry. They are currently classified as high-income countries. Developments in the trade in services in these countries indicate changes in the business environment, firms and the challenge of improving their position on the international market. Visegrad countries belong to highly open economies, because of its heavy dependence on foreign trade and considerable sensitivity to the global economic environment. Each of these countries represents a small internal market, which is unable to cover the raw material requirements and is substantially dependent on the export of domestic production to foreign markets. The discussion of the assessment of the development of foreign trade in business services of Visegrad countries and identification of the presence of their comparative advantages is the object of the contribution. International trade in services in the V4 countries increased by 7% on the export side in 2013–2016, on the import side it decreased by 0.85%, of which trade in business and management consulting and public relations services increased by 76% on the side export and 53% in import. Trade in services, in spite of the V4 membership of the EU28 and the single market, is under constant pressure from a variety of factors, including pressures of associations, interest associations or groups. Three of the V4 countries are not members of the Euro area, and the use of national currencies and their own monetary policy also affects international trade in the trade in services.