The goods and services sold to other countries are known as Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible. An export is represented by a flow of money coming into the country. Goods and serices bought from other countries are known as Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible. An import represents flow of money leaving the country. All exports which can be seen, touched or weighed such as oil, machinery etc. are termed as Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible exports. All imports which can be seen, touched or weighted are known as visible Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible. Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible measures the difference between value of visible exports and visible imports. If the visible imports is more than the visible exports then there is Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible balance of trade. A Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible balance of trade is when the visible exports is more than the visible imports.
Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible trade involves the exchange of services such as insurance, banking and tourism which cannot be seen or touched. Paying for a foreign holiday is an example of Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible whereas if a person invests in a foreign country and earns income from there is an example of Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible.
The balance of Balance of tradeexportsfavourableimportsInvisibleinvisible exportsinvisible importspaymentsunfavourablevisible shows all the payments and receipts between one country and all the other countries it trades.