ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Invisible trade basically refers to the trading of services. In other words, as services are intangible and cannot be touched or seen, the trade in services is also known as invisible trade. This trade includes services such as travel and tourism, communication and intellectual property rights.

Detailed explanation-2: -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-3: -The correct option is A invisible trade. Intangible aspect of services that trade in services is also known as invisible trade.

Detailed explanation-4: -visible trade, in economics, exchange of physically tangible goods between countries, involving the export, import, and re-export of goods at various stages of production. It is distinguished from invisible trade, which involves the export and import of physically intangible items such as services.

Detailed explanation-5: -Can you touch or see a car, coal, a smartphone, bananas, or coffee grains? The answer is ‘Yes’. Things you can touch form part of visible trade. We cannot touch royalties, license fees, tourism, or software – they form part of invisible trade.