ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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car
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communication, banking and teaching
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tv and computer
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None of the above
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Detailed explanation-1: -Invisible items refer to those items which cannot be seen, felt, touched or measured. For example, services of shipping, banking, insurance, etc.
Detailed explanation-2: -The invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues.
Detailed explanation-3: -An invisible trade is an international transaction that does not include an exchange of tangible goods. Customer service outsourcing, overseas banking transactions, and the medical tourism industry all are examples of invisible trade.
Detailed explanation-4: -Under the BoP standard presentation, invisibles form part of the current account and have three major heads: services, transfers and income.