An example of in invisible item of trade is

Assessment: JAMB UTME - Commerce - 2025 Subject: Commerce

Question 1 Report

An example of in invisible item of trade is

 

Answer Details

This question tests the distinction between visible and invisible items of international trade.

Visible trade involves the exchange of physical, tangible goods that can be seen, touched, and recorded as they cross a country's border, such as textiles, machinery, and oil. Invisible trade, by contrast, involves the exchange of services rather than physical items; nothing tangible crosses the border, yet money still changes hands in payment for the service rendered. Shipping is a service, the carriage of goods or passengers by sea, and because a service rather than a physical commodity is being paid for, it is classified as an invisible item of trade.

Textile, machinery, and oil are all physical commodities that can be loaded, transported, and physically delivered across borders, which makes each of them a visible item of trade rather than an invisible one. The key difference is that visible trade can be counted and recorded as actual units of goods moving through customs, while invisible trade, such as shipping, banking, insurance, and tourism, involves a service being paid for without any physical good changing hands.

Whenever a question lists a service, such as shipping, banking, or insurance, alongside physical goods, remember that the service is the invisible item, since only tangible goods count as visible trade.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning