• Invisible Trade Revenue and expenditure incurred by exchange of services and other nonmaterial commodities. • Income and expenses concerning the import and export of commodities, e.g. freight, premium, processing charges. • Income and expenses irrelevant to the import and export of commodities, e.g. traveling expenses, diplomatic agent expenses, overseas remittances, franchise fees, dividends paid to foreign investors, etc. • As invisibles do not go through customs clearance, they are not indicated in customs statistics, but on a country’s statement of balance of payments.
What is international trade?
International trade is the fair and deliberate
exchange of goods and services across national boundaries. International trade vs. foreign trade
Teaching objectives: