Business Ideas Divisions of foreign trade

[Mastergp]

International trade can be divided into import, export.

Import trade:
Import trade is the act of buying goods and services from other countries. It involves purchase of goods and services from a foreign country. It is sometimes restricted to icontrol a country's balance of payment deficit. The goods are imported either in Response to direct orders or on consignment.
Import trade is divided into: visible and invisible trade.
Visible import:
Visible imports consist of goods that can be seen and touched, that is tangible goods which come from other countries. Nigeria's visible imports, for example, include automobile, electronics,machinery etc.

Invisible import:
Invisible imports consist of services that cannot be seen or touched, rendered by other countries.
Examples of invisible imports are banking, tourism, aviation. This will appear in the balance of payments.


Export trade:
Export trade is the act of selling goods and services to other countries. It is the selling of a country's products abroad. Some Governments frequently attempt to encourage exporters by introducing export subsidy.