Mode 2 trade in retail services: from Toronto to Buffalo

Buffalo, New York. Photo by Stephen Zimmermann

This article provides an illuminating example of that oft-overlooked mode of trade in services: consumption abroad ("Mode 2" in the lingo of the General Agreement on Trade in Services). The article focuses primarily on retail services, and particularly the substantial impact of Canadian shoppers on the Buffalo-area economy. It also addresses several other service industries, such as travel and tourism, health care, and live sporting events.