GATS Mode 2 (Consumption abroad)

GATS Mode 2, or Consumption Abroad, refers to situations where consumers from one country travel abroad to purchase goods or services. For example, when a person from the U.S. visits a foreign country and uses local health clinics, restaurants, or education services, they are engaging in Mode 2 trade. This mode focuses on the act of accessing services while physically present in a different country, emphasizing the cross-border element of consumption rather than cross-border provision or movement of goods. It helps countries track how international travel influences the demand for their services and their economy.