Question on: JAMB Economics - 1994
In international trade, shipping and other freight charges are treated as?
A
invisible items
B
unilateral transfers
C
capital transactions
D
autonomous capital transactions
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Correct Option: A
Shipping and other freight charges are considered invisible items in international trade. These are services rendered in international transactions and, unlike visible items (goods), do not involve the physical movement of goods across borders. They are part of the current account, which tracks the flow of goods, services, income, and current transfers between a country and the rest of the world.
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