INVISIBLE BALANCE Meaning and
Definition
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Invisible balance refers to the economic concept that takes into account the balances of international trade in services and investments between countries. It is a component of the balance of payments, which reflects the economic transactions between a particular country and the rest of the world over a specific time period.
The invisible balance is composed of several categories, including trade in services, such as tourism, transportation, and financial services, as well as income from foreign investments, such as dividends and interest payments. It also includes transfers, such as foreign aid and remittances from overseas workers.
Unlike visible balance, which refers to trade in tangible goods like goods and commodities, the invisible balance encompasses intangible transactions that are not physically measurable. While visible balance is usually the focus of attention, the invisible balance holds significant importance as it reflects a country's competitiveness and ability to generate income through non-physical transactions.
A positive invisible balance suggests that a country is earning more income from its services, investments, and transfers than it is spending on foreign services and transfers. On the other hand, a negative invisible balance indicates that a country is spending more on foreign services and transfers than it is earning, possibly indicating economic imbalances.
Governments and policymakers closely monitor the invisible balance as it has implications for a country's overall economic health and international competitiveness. A balanced invisible balance, along with a balanced visible balance, contributes to a stable balance of payments.
Common Misspellings for INVISIBLE BALANCE
- unvisible balance
- jnvisible balance
- knvisible balance
- onvisible balance
- 9nvisible balance
- 8nvisible balance
- ibvisible balance
- imvisible balance
- ijvisible balance
- ihvisible balance
- incisible balance
- inbisible balance
- ingisible balance
- infisible balance
- invusible balance
- invjsible balance
- invksible balance
- invosible balance
- inv9sible balance
Etymology of INVISIBLE BALANCE
The term "invisible balance" does not have etymology in the traditional sense, as it is a combination of two English words. However, the concept it refers to can be traced back to the field of economics.
The word "invisible" is derived from the Latin word "invisibilis", which means "unseen" or "not visible". It entered the English language in the late 14th century and has been used to describe things that cannot be seen or are not easily noticeable.
The word "balance" comes from the Latin word "bilanx", which means "having two scales". It entered English in the 13th century and has been used to refer to equilibrium, stability, or a state of equality.
When combined, "invisible balance" is a term used in economics to describe a component of a country's balance of trade or balance of payments.
