There are three branches of Foreign trade and they are;
(a) Import Trade
(b) Export Trade
(c) Entrepot Trade
(a) Import Trade:
This is the process of buying or purchasing goods and services from other countries.
(i) Visible Imports: These are tangible goods purchased from other countries. It includes capital and consumer goods such as automobiles, equipment, machinery, rice, electronics, etc.
(ii) Invisible Imports: These are services provided by other countries. The services cannot be seen physically e.g. shipping, transportation, insurance, Banking etc.
(b) Export Trade:
This involves selling a county’s products and service abroad.
(i) Visible Export: Tangible goods sold to other countries such as crude oil, timber, rubber, cotton, etc.
(ii) Invisible Export: These are services sold by a country to other countries of the world. Some of these services are banking, insurance, transport, etc.
(c) Entrepot Trade:
This is the re-exporting of goods that has been imported from other countries.
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