1. Have friends who run a medium size financial services business. UK based but recently they’ve looked to expand globally.
2. They’ve said that SM in services doesn’t exist and passporting is a red herring. What matters is that in each country you have to deal with that country’s regulators, employment and tax regime etc.
3. To them there is no customs, ROO, etc. Local issues more important. If you want to do services business in most countries you set up an office there and abide by local rules.
4. For example France is a pain in the arse, as much for secondary labour costs and employment law as anything. Lux and Holland much easier. Then there’s the matter of key staff wanting to actually go to these places. They employ a lot of EU nationals in the UK.
5. As for the gravity model, they say I services gravity has a lot to do with language and culture and little to do with geographical distance.
6. UK business is 80% services and mostly internal at that. Worrying about trade deals is vastly over-rated.
7. What’s more important is putting the right legislation in place to encourage and facilitate your own strengths. The rest follows.
