Visible/ Invisible Trade

As a specialist in this area, I can say the topic is not as difficult as it seems. Visible trade involves trading goods that can be touched and weighed. Examples include goods such as oil, machinery, food, clothes, etc. You have to know that Visible Trade consists of: • Visible exports: Selling of tangible goods which can be touched and weighed to other countries. • Visible imports: Buying of tangible goods which can be touched and weighed from other countries. As for invisible trade, it involves the import and export of services rather than goods. Example include services such as insurance, banking, tourism, and education. To better understand this, you also need to know the definition of the term “Balance of Trade”. The balance of visible trade is the difference between the value of visible exports and the value of visible imports of a country. If the value of visible exports is more than visible imports the country will have a Surplus balance of trade. If the value of visible imports is more than visible exports the country will have an unfavourable balance of trade. Balance of invisible trade is the difference between the value of invisible exports and the value of invisible imports of a country.