Correct Option: A. Import and export of goods Detailed Explanation: The term "balance of visible trade" specifically refers to the difference between the value of a country's exports and imports of tangible goods (also known as visible goods). This concept is a crucial part of international trade and is often used to assess a country's economic health.

1. Understanding Visible Trade:
2. Visible Trade: This includes all physical goods that can be seen and touched, such as machinery, food, clothing, and raw materials. It contrasts with "invisible trade," which involves services like banking, insurance, and tourism.
3. The balance of visible trade is calculated as: [ \text{Balance of Visible Trade} = \text{Exports of Goods} - \text{Imports of Goods} ]
4. A positive balance indicates that a country exports more goods than it imports, which can be a sign of economic strength. Conversely, a negative balance suggests that a country is importing more than it is exporting, which could lead to trade deficits.
5. Why Option A is Correct:
6. Option A correctly identifies that the balance of visible trade pertains to the import and export of goods. This is the fundamental definition of the term, making it the most accurate choice.

Why the Other Options are Incorrect:

• Option B: Import and export of service:
• This option refers to "invisible trade," which includes services rather than goods. While services are an essential part of a country's economy, they do not fall under the definition of visible trade. Therefore, this option is incorrect.
• Option C: Balance of current account in the balance of payment:
• The current account includes both visible and invisible trade, as well as income from abroad and current transfers. While the balance of visible trade is a component of the current account, it does not encompass the entire current account. Thus, this option is broader than the specific definition of visible trade and is therefore incorrect.
• Option D: Balance of capital account in the balance of payment:
• The capital account records transactions involving the purchase and sale of assets, such as investments and loans. It does not relate to the trade of goods or services. Therefore, this option is not relevant to the concept of visible trade and is incorrect.

Summary of Key Points:

• The balance of visible trade specifically refers to the import and export of tangible goods.
• It is calculated as the difference between exports and imports of goods.
• Option A is correct because it directly aligns with the definition of visible trade.
• Options B, C, and D are incorrect as they refer to services, the broader current account, and capital transactions, respectively.

Revision Summary:

• Visible Trade: Involves tangible goods (exports and imports).
• Balance Calculation: Exports of goods - Imports of goods.
• Correct Answer: A (import and export of goods).
• Incorrect Options: B (services), C (current account), D (capital account).