JUNIOR CYCLE BUSINESS STUDIES Visible and Invisible Trade
The trade of goods (e.g. electronics, food and vehicles) is known as visible trade. The trade of services (e.g. tourism, banking and transport) is known as invisible trade. The following table shows examples of Ireland’s visible and invisible imports and exports.
Visible Imports KNOW? Did You
Ireland is one of the largest exporters of pharmaceuticals in the world.
Exports
• Tea and coffee • Oil • Motor vehicles • Clothes • Wine • Electronic equipment • Perfumes and cosmetics
Go to page 230 of your Activities and Accounts Book to identify Ireland’s visible and invisible trade.
BALANCE OF TRADE AND BALANCE OF PAYMENTS
When goods and services are imported, money is leaving the Irish economy. When goods and services are exported, money is coming into the Irish economy. For this reason, it is better to have a greater value of exports than imports.
Balance of Trade
The difference between the value of a country’s visible imports and visible exports is called balance of trade.
Balance of trade is calculated as follows: Balance of trade = visible exports – visible imports