In international trade, shipping and other freight charges are treated as?
Answer Details
In international trade, shipping and other freight charges are treated as invisible items.
Invisible items are those international transactions that do not involve the physical movement of goods or assets across borders, but rather involve the provision of services or the transfer of intangible assets such as patents, trademarks, and copyrights. Shipping and other freight charges fall under the category of invisible items because they represent the cost of transporting physical goods across borders and do not themselves represent the physical movement of goods.
In contrast, unilateral transfers refer to the transfer of funds or assets from one country to another without any expectation of a corresponding payment or transfer in return. Capital transactions and autonomous capital transactions, on the other hand, refer to the transfer of financial assets, such as stocks, bonds, and loans, between countries.