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?Solution
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.
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