Economics Balance Of Trade Questions Medium
Visible trade refers to the exchange of tangible goods between countries, such as physical products like machinery, vehicles, and consumer goods. It involves the import and export of physical goods that can be seen and touched. Visible trade is also known as merchandise trade.
On the other hand, invisible trade refers to the exchange of intangible services between countries. It involves the import and export of services like tourism, transportation, banking, insurance, and intellectual property rights. Invisible trade does not involve the physical movement of goods but rather the provision of services.
The main difference between visible and invisible trade lies in the nature of the goods or services being exchanged. Visible trade deals with physical products, while invisible trade deals with services. Both types of trade contribute to a country's balance of trade, which is the difference between the value of its exports and imports.