Define the term ‘invisibles’ in the Balance of Payments account. Give two examples of invisibles.

 Invisibles term of BPO account are those which are not seem crossing the border. These are not recorded at ports. All types of services like services of shipping, banking, and tourism, investment services and unilateral transfer are invisible items. The balance of export and import of invisible is called balance of invisible trade.  invisible trade, in economics, the exchange of physically intangible items between countries. Invisible trade can be distinguished from visible trade, which involves the export, import, and export of physically tangible goods.  

Basic categories of invisible trade include services (receipts and payments arising from activities such as customer service or shipping); income from foreign investment in the form of interest, profits, and dividends; private or government transfers of monies from one country to another; and intellectual property and patents. (See also intellectual-property law.) 

Services account for the vast majority of invisible trade. Such services include freight and passenger transport; banking, other financial services, and insurance; scientific-technical exchange; and international tourism. Income gained by foreign investment is the second largest contributor to invisible trade, and private and government transfer is the smallest. 

Invisible Items : Exports and Imports of services is called invisible items. For example, Shipping, Insurance, Banking etc.  

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