What type of transactions do services represent?

Services represent intangible transactions because they involve actions or activities that cannot be physically touched, owned, or stored. Unlike tangible goods, which are physical items that can be seen and handled, services pertain to experiences, performances, or activities provided by service providers to meet the needs of consumers. This includes services such as education, health care, and entertainment, where value is delivered through the provision of expertise or labor rather than a physical product.

In contrast, tangible transactions are those that involve physical goods that can be seen and touched. Digital transactions refer specifically to online or electronic exchanges, which can include both tangible and intangible transactions but do not exclusively define the nature of services. Foreign transactions denote exchanges that occur across national borders, which is unrelated to the nature of services themselves. Thus, the classification of services as intangible transactions highlights their distinct characteristics in the marketplace.