Basic terms in foreign trade

Countries buy and sell various goods as well as various services. Goods bought from abroad, such as food, cars, machines, medicines, books and many others, are called visible¹ imports.Goods sold abroad are calledvisible exports.

Services, such as insurance , freight, tourism, technical expertise and others, are called invisible imports and invisible exports.

The total amount of money a country makes including money from visible and invisible exports, for a certain period of time, usually for a year, is Gross National Product,orGNP.

The difference between a country’s total earnings⁶or GNP, and its total

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expenditure is called its balance of payments .

The difference between what a country receives for its visible exports and what it pays for its visible imports is its balance of trade⁹.If a country sells more goods than it buys, it will have asurplus¹⁰If a country buys more than it sells, it will have adeficit.

Words

Visible insurance freight ⁴expertise

• явний;

• страхування;

• фрахтування, фрахт;

• експертиза;

• валовий національний продукт;

• прибутки, надходження;

• витрати;

• платіжний баланс;

• торгівельний баланс;

• надлишок, активне сальдо.