Invisible and Visible trade and patterns

Visible exports

Tangible goods which are sold to other nations.

Invisible exports

Non-tangible services which are sold to other nations.

Trade Balance

The difference between the monetary value of exports and imports of output of a country.

Trade Surplus

A positive trade balance where there are more exports than imports.

Trade Deficit

A negative trade balance where there are more imports than exports.

Benefits of Trade Surplus

Increases the amount of money flowing into a country, increases national income and employment.

Impact of Trade Deficit

Can lead to reliance on foreign goods, harming domestic industries and resulting in job losses, particularly among less skilled workers.

Reason for Africa's high exports in fuels and mining

Rich reserves of fuels and mining due to geographical location; last major region to start mining, still has vast reserves.

Example of African country with significant oil reserves

Nigeria, which has the 3rd largest oil reserve.

Reason for Europe's high exports in manufactured goods

A skilled workforce leading to increased production of advanced goods such as cars and medical equipment.

Why Asia exports more manufactured goods than North America

Cheaper labor costs incentivizing companies to move production to Asia for higher profitability, alongside significant governmental investments.

What countries import the most?

In $ BN

1. USA (2380)

2. China (2249)

3. Germany (1319)

4. Japan (811)

5. UK (686)

What countries export the most?

In $ BN

1. China (2252)

2. USA (1610)

3. Germany (1547)

4. Japan (710)

5. South Korea (628)