Direct investment type. The main purpose of this technical service trade is to ensure foreign markets. For example, when the trade target country implements the trade protection policy to restrict imports, it makes foreign direct investment in the trade protection country and occupies the country's market. At this time, the home country of investment often takes advantage of technological advantages to participate in local production and operation, and gains benefits by influencing the local market.
The relationship between technology export and foreign direct investment can also be well explained by Vernon's product life cycle theory. Generally speaking, a country has a monopoly advantage in the export of new products it develops. However, with the absorption of product technology by importing countries, the standardization of production process objectively requires the production of products to be transferred to areas with the most advantages in human resources, capital and other related factors. At this time, the international competitive advantage of R&D countries in this product is gradually decreasing. In order to avoid the danger of declining product advantages in the future, technologically developed countries or R&D enterprises can choose resource-rich areas in advance, conduct foreign direct investment through technology licensing, participate in cooperative operations, and explore foreign markets.
Supplementary type. This is mainly as a supplement to the export of technology-intensive products such as machinery and complete sets of equipment, and it is a problem of supplementing commodity trade. Technology export is usually accompanied by the export of complete sets of software and hardware or raw materials.
In the trade of supplementary technical services, the income from technical fees is only a small part, and the real purpose behind it is to promote commodity trade, especially when equipment is exported to developing countries with underdeveloped technology, technical guidance becomes very important.
Neutral type. Neutral trade in technical services aims at technical exchange and cooperation, exchanging technology with each other and improving technical level. This situation generally occurs in developed countries with high technical level. Usually neutral and mutually beneficial to commodity trade. In fact, countries with strong negotiating ability benefit more from it.