Question

In order to get to the Net Invisibles, we need to fetch the difference between the value of exports and value of imports of invisibles of a country in a given period of time. Which of the following make a part of Invisibles? (1) services (2) transfers (3) flows of income Which of the above statement(s) is/are CORRECT?

Q: Answer-In order to get to the Net Invisibles, we need to fetch the difference between the value of exports...

Net Invisibles is the difference between the value of exports and value of imports of invisibles of a country in a given period of time. Invisibles include services, transfers and flows of income that take place between different countries. Services trade includes both factor and non-factor income. Factor income includes net international earnings on factors of production like labour, land and capital. Non-factor income is net sale of service products like shipping, banking, tourism, software services, etc.