The balance on invisible trade refers to the net balance of a country's trade in services. It is calculated by subtracting the value of imports of services from the value of exports of services. Therefore, the correct answer is option 'B' - the balance on invisible trade is equal to the export of services minus the import of services.

Explanation:

- The balance on invisible trade is a component of the overall balance of trade, which includes both visible trade (trade in goods) and invisible trade (trade in services).
- Visible trade refers to the import and export of tangible goods, such as machinery, vehicles, and consumer products. This is often the focus of discussions on trade deficits or surpluses.
- Invisible trade, on the other hand, refers to the import and export of intangible services, such as tourism, transportation, financial services, and software development.
- When calculating the balance on invisible trade, we consider the value of services exported by a country and subtract the value of services imported by the country during a specific period, usually a year.
- If the value of services exported is higher than the value of services imported, the country has a positive balance on invisible trade, indicating a surplus in trade in services.
- Conversely, if the value of services imported is higher than the value of services exported, the country has a negative balance on invisible trade, indicating a deficit in trade in services.
- The balance on invisible trade is an important indicator of a country's competitiveness and specialization in services, as it reflects the ability to generate revenue from services provided to other countries and the reliance on services provided by foreign countries.
- It is worth noting that the balance on invisible trade is often influenced by factors such as exchange rates, global demand for services, and domestic policies that affect the competitiveness of service sectors.
- Overall, the balance on invisible trade provides valuable insights into a country's trade performance in the services sector and its impact on the overall balance of payments.