ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade in goods
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Trade in services
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -Visible trade involves trading of goods which can be touched and weighed. Examples include trade in goods such as Oil, machinery, food, clothes etc. Visible exports: Selling of tangible goods which can be touched and weighed to other countries.
Detailed explanation-3: -Visible exports are physical goods sent out of the country and money comes in e.g. Butter exported to China, Beef exported to Scotland. Visible imports are physical goods coming in to the country and money goes out e.g. Wine from Chile, leather shoes from Spain.
Detailed explanation-4: -Visible imports = Goods bought from other countries. Invisible imports = Services bought from other countries. Eg. An Irish family holidaying abroad.
Detailed explanation-5: -What Is Invisible Trade? 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.