Q.What is meant by 'invisible items' in the Balance of Payments? Give two examples.

Invisible items are transactions in services and intangible flows that are recorded in the balance of payments even though they do not pass through customs as physical goods.

Unlike visible trade, which covers tangible goods that can be seen and physically checked by customs, invisible trade covers transactions in services and other intangible items that cannot be physically inspected but still involve a receipt or payment of foreign exchange. These are recorded in the current account of the balance of payments alongside visible trade, investment income and transfers. …

Students sometimes list a physical commodity (like 'gold imports') as an example of an invisible item, confusing it with visible trade. Invisibles must be ser …