Invisible and Visible trade and patterns

Visible exports - are tangible goods which are sold to other nations

Invisible exports - are non-tangible services which are sold to other nations

Trade Balance - is the difference between the monetary value of exports and imports of output of a country

Trade Surplus - is a positive trade balance where there is more exports than imports

Trade Deficit - is a negative trade balance where there is more imports than exports

Why is a trade surplus good? It increases amount of money flowing into a country, increases national income and employment.

• Visible and invisible trade is dominated by the country of North America, Western Europe and Asia. LICs and MICs have become more strongly linked to HIC, increases living standards in many LICs and MICs but has no impact on lower skilled workers due to job cuts and fall in wages.

• On the other hand, a trade deficit can lead to a reliance on foreign goods, which may harm domestic industries and result in job losses in specific sectors, particularly among less skilled workers.

Explain why

a) Africa has such a high percentage of exports in fuels and mining

- Africa has a really rich reserves of fuels and mining due to their graphical location and it was one of the latest to start mining so they still have a lot of reserves left. E.G. Nigeria has 3rd largest oil reserve. DRC large amount of cobalt. - Fuel and mining are maybe someone of the only jobs

b) Europe has such a high percentage of exports in manufactured goods

- Europe has a skilled workforce leading to a increase import in advanced goods such as cars, medical equipment and pharm products.

c) Asia exports even more manufactured goods than North America

Asia has a cheaper labour costs, therefore many companies move production to asia to become for profitable, and there is large amount of investments from the governments