gcse economics - international trade - exports and imports

EXPORTS

Goods and services sold to foreigners by UK firms. The money received will enter into the UK.

VISIBLE EXPORTS

Actual goods which are sold to foreigners by UK firms e.g. tables, TV’s, vehicles.

INVISIBLE EXPORTS

Services which are sold to foreigners by UK firms e.g. banking, insurance, tourism

IMPORTS

Goods and services bought by UK residents and firms from foreigners. The money paid will leave the UK and go into the foreign country.

VISIBLE IMPORTS

Actual goods and services bought by UK residents or firms e.g. tables, vehicles etc

INVISIBLE IMPORTS

Services bought by UK residents and firms e.g. banking and tourism.

BE CAREFUL

If a UK individual goes to Spain on holiday this is classed as an invisible IMPORT. This is because the money is actually paid into Spain.

ACTION

A UK sells a table to France
B UK buys a car from Germany
C UK buys an insurance service from USA
D UK sells banking services to Korea
E A UK individual goes on holiday to Japan
F An Italian tourist visits the UK