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Invisible imports are intangible goods brought into a country. A standard import, such as an automobile, involves the physical transfer of a good from one country to another. In contrast, an invisible import is generally a service – if a country receives investment banking consulting from another country for instance, it still qualifies as an inflow like a normal import despite nothing tangible being brought into the country.(BPOS) Outflow of funds from invisibles (services), listed in a country's balance of payments statement. visible export example car visible import example car
For the best answers, search on this site are pros and cons to self-sufficiency. As I have learned and believe there are more pros for international trade than for self-sufficiency. (It has been a long time since I learned it so I can't spout off the reasons I should perhaps look it up again.) However, the pros disappear when you get to having a trade deficit. There is no good reason for that. I think there is one ideology that has, at least recently, come to my knowledge and the thought is that if we rely on everyone else when they run out we can turn around and provide for everyone else. That has been an excuse for why we don't use our own oil reserves. One reason for international trade is one nation is more expert than another in producing something. I know you don't drink alcohol but it is an easy example. France supposedly makes the best wines. Germany the best cheeses, chocolate, and beer. I think it should work in a universal economy as well as in a micro economy. The baker makes the bread and trades the bread for your eggs, his meat, and her chairs. or whatever. Also in another country labour may be cheaper so the producer can have it their expert design made where it will be affordable. Personally I would prefer buying German or Italian cars, Japanese Electronics, and Dubai architecture. However, since I am not financially able I buy products made by those countries I buy ripoff stuff made in China and Thailand, and getting my technical advice from India. :) The other good thing about international trade is additional competition. Which brings reduction in prices and increase in quality unless the government gets involved. For example, previously Japanese cars imported to the United States were taxed (stupid government procedure) and their price forced to be well over American automobile prices. This caused the American car to be far inferior to the Japanese car because unless people wanted to put that extra money into a better car they had to buy American (and we weren't so credit happy then). So American car manufacturers only had to compete with themselves and so they made a pact to not do much. NOW FOR THE REST OF YOUR QUESTIONS: It would be a brilliant move by our country to pay off all our debts and be MORE self sufficient but that is NOT where our debt is coming from - trade defecits. You have some very good points. Just make sure you understand that withdrawing COMPLETELY from the world economy will be harmful to us. BUT we DO need to decrease all DEPENDENCY on other nations and organisations. A great doctrinal saying right here would be new-jersey the world but not OF the world. ;)
If they are the only importing country in that area, they can export it to numerous nearby countries for a profit. For example, if Argentina is exporting soybeans to China, China turns around and exports them to smaller asian countries. Everybody wins. Argentina has a huge client, China has a monopoly on the soybean industry in Asia, and the smaller countries get a cheaper rate on soybeans then if they went to Argentina directly.
Hi all can someone tell me what is an invisible export please? my email is email@example.com