Visible and invisible imports and exports. Flashcards
What are visible imports?
Goods that are bought by a country from other countries and can be seen and physically touched
Give examples of visible imports.
Electronics, clothing, vehicles, raw materials like oil or timber.
What are visible exports?
Goods that a country sells to other countries, which are tangible and physically moved across borders
Provide examples of visible exports.
Automobiles, textiles, food products, minerals.
What are invisible imports?
Services bought by a country from other countries, which are intangible,
Give examples of invisible imports.
such as financial services, tourism, or consulting.
What are invisible exports?
Services provided by a country to other countries, which are intangible, like banking, education, or tourism services.
What are examples of invisible exports?
Earnings from foreign tourists, international student fees, or revenue from global financial services.
Why are both visible and invisible trade important for a country?
They contribute to a country’s balance of trade and overall economy by bringing in revenue and fulfilling domestic needs.
How do visible and invisible imports and exports affect the balance of trade?
A surplus occurs when exports (visible + invisible) exceed imports, while a deficit occurs when imports exceed exports.
Why is invisible trade increasingly important in modern economies?
Due to globalization, the growth of the service sector, and advances in technology enabling remote services.
How can you distinguish between visible and invisible trade in an example?
Exporting cars is visible trade, while earning revenue from international students studying in your country is invisible trade.
