Visible balance is also known as the balance of trade. It refers to the difference between a country's exports and imports of visible goods, such as physical goods like machinery, food, and clothing. If a country's exports of visible goods are higher than its imports, it has a surplus in its balance of trade, while if its imports are higher than its exports, it has a deficit. The balance of trade is one component of the balance of payments, which also includes the balance of services, capital transfers, and financial flows.