international trade

Visible Trade. Image credit Maltatoday.com ZIMSEC O Level Commerce Notes:Visible and Invisible trade

Invisible trade

• Trade in services only e.g. tourism, freight, insurance.
• Calculated for given periods of time, usually one year.
• Invisible balance= exported services value-minus imported services value.
• For example Tourists coming to Zimbabwe $25 million.
• Banking services provided […]
  

The dreaded Somali Pirates. Image credit slate.com ZIMSEC O Level Commerce Notes: Difficulties faced by importers and exporters

• Different languages
• Language is a barrier in international trade because it leads to communication problems.
• There is a need to translate information or instructions from one language to […]
  

Balance of payments. Image credit therecordingrevolution.com ZIMSEC O Level Commerce Notes: Balance of Payments (B.O.P)

Balance of payments (B.O.P)

• This is the difference between Zimbabwe’s total earnings (receipts) and total expenditure.
• Exported goods and services less imported goods and services.
• It is calculated for a given year.
• When the […]
  

South African border post. Image credit drivesouthafrica.co.za ZIMSEC O Level Commerce Notes: Methods used to correct an unfavourable Balance of Payment

Methods and ways of correcting an unfavourable balance of payments.

• The government of Zimbabwe may use the following ways to correct its BOP if its unfavourable […]
  

Beitbridge border post. image credit thezimbabwemail.com ZIMSEC O Level Commerce: Measures the government can use to control trade

Trade (tariff) barriers.

• These are measures taken by government to reduce imports and in some cases ban trade completely with some countries.

Customs (import) duty

• A tax levied on imported […]