O Levels Economics (2281)•2281/12/O/N/19

Explanation
Services exports improve Kenya's invisible trade balance
Steps:
- Invisible trade covers services like transport, not physical goods.
- A favorable change means higher service exports (credits) or lower imports (debits).
- Evaluate options: identify which involves Kenyan service provision abroad.
- Option A qualifies as a Kenyan transport service export.
Why A is correct:
- Transport services by a Kenyan firm for Uganda count as an invisible export, crediting Kenya's services account per balance of payments definitions.
Why the others are wrong:
- B: Tea exports are visible goods trade, not services.
- C: Delegation visit incurs Kenyan service import costs (travel), debiting the account.
- D: Zambian goods exports to Kenya are visible imports, worsening Kenya's goods balance.
Final answer: A
Topic: Current account of balance of payments
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