O Levels Economics (2281)•2281/13/O/N/19

Explanation
Services exports improve the invisible trade balance
Steps:
- Identify invisible trade as exports/imports of services like transport, not goods.
- Seek Kenyan service export for favorable (credit) impact on balance.
- Evaluate options: A involves Kenyan transport service; others relate to goods or costs.
- Confirm A credits Kenyan invisible account via service revenue.
Why A is correct:
- Transport contracts are service exports, crediting the invisible 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, debiting the account.
- D: Zambian exports to Kenya are Kenyan goods imports, worsening visible trade.
Final answer: A
Topic: Current account of balance of payments
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