Invisible Trade

What is an 'Invisible Trade '

An invisible trade is a business transaction that occur with no exchange of tangible goods. An invisible trade involves the transfer of non-tangible goods and/or services, including customer service, intellectual property and patents. The items involved in invisible trade are associated with a value and can be exchanged for tangible goods.

BREAKING DOWN 'Invisible Trade '

By contrast, visible trade involves the exchange, or the import and export, of tangible goods. Examples of invisible trade include consulting, income from foreign investments, shipping services and tourism. Invisible trade represents an increasing percentage of world trade.

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RELATED FAQS
  1. What is the affect of the invisible hand on consumers?

    Discover how consumers help initiate and benefit from the invisible hand of the market, which naturally coordinates trade ... Read Answer >>
  2. How does the invisible hand affect prices in the Microeconomic Pricing Model?

    Find out why the microeconomic pricing model cannot accurately describe economic phenomena, and how it misses the real causes ... Read Answer >>
  3. How does the invisible hand affect a capitalist economy?

    Take a deeper look at how the invisible hand of the market works and why it is so crucial for understanding how capitalist ... Read Answer >>
  4. What is the affect of the invisible hand on the government?

    Find out why government policy goals are often frustrated by the same forces that guide the invisible hand of the market ... Read Answer >>
  5. How is the invisible hand affected in a communist or socialist economy?

    Discover why the invisible hand of the market is compromised by socialist and communist economies, where the government controls ... Read Answer >>
  6. How does the invisible hand phenomenon affect investment markets?

    Read about how the invisible hand of the market coordinates investment markets and provides social benefit and why its effects ... Read Answer >>
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