The invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues. This figure is usually generated by tertiary industry. The term 'invisible balance' is especially common in the United Kingdom.
For countries that rely on service exports or on tourism, the invisible balance is particularly important. For instance the United Kingdom and Saudi Arabia receive significant international income from financial services, while Japan and Germany rely more on exports of manufactured goods.
Read more about Invisible Balance: Types of Invisibles, Balance of Payments and Invisibles, Balance of Payments Problems and The Invisible Balance
Famous quotes containing the words invisible and/or balance:
“When you live on cash, you understand the limits of the world around which you navigate each day. Credit leads into a desert with invisible boundaries.”
—Anton Pavlovich Chekhov (1860–1904)
“We must introduce a new balance in the relationship between the individual and the government—a balance that favors greater individual freedom and self-reliance.”
—Gerald R. Ford (b. 1913)