Social Science (087) — AI-generated practice question

International tourism functions like an export for India because when foreign tourists visit India, they spend money on Indian goods and services — such as hotels, transport, food, handicrafts, and heritage sites. This spending brings foreign exchange into the country, just as exporting physical goods does. Instead of sending goods abroad, India earns foreign currency by attracting foreign tourists to India. Thus, tourism is considered an "invisible export," contributing to a favourable balance of trade and overall economic prosperity.

Source: International Trade & Tourism as a Trade, Chapter 7

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• The key insight examiners want: foreign exchange earnings make tourism equivalent to an export — money flows in without a physical good leaving the country.
• Use the phrase "invisible export" or "foreign exchange earnings" — these are the scoring terms.
• Link it to balance of trade (favourable) for full marks.
• Avoid over-explaining; three clear points at ~25 words each = 3 marks.