
Mode 2 (Consumption abroad)
Mode 2, or Consumption Abroad, occurs when a traveler from one country purchases services—such as healthcare, education, or tourism—in another country. Instead of buying these services at home, they go directly to the foreign provider to receive the service. For example, a person visiting a foreign spa or attending a university abroad is engaging in Mode 2. This mode reflects cross-border consumption of services when the consumer physically travels to or stays in the foreign country to access the service. It emphasizes the role of individual movement in international service transactions.