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Advancements in information and communication technologies have created unprecedented opportunities to services providers in both developing and developed countries. The service sector represents one of the fastest growing areas of exports in the global trade. The Internet and e‐commerce make it possible to sell a variety of services, ranging from airline tickets to financial services, from anywhere in the world, around the clock. International delivery of services through electronic means is creating value in the supply chain by the reduction of many of the barriers to entry. This paper focuses on the determinants influencing the diffusion and export of e‐services across borders. The paper also presents strategic challenges, followed by implications for service providers.

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