Invisible Trade & Thatcher's Revolution: Understanding Key Economic Concepts

'Invisible trade' refers to the exchange of intangible goods and services such as tourism, consulting, and intellectual property. It's called 'invisible' because no physical goods are being traded, and these transactions are not recorded in customs statistics.

'Thatcher's revolution' refers to the economic and political policies implemented by Margaret Thatcher, the Prime Minister of the United Kingdom from 1979 to 1990. The backdrop for this revolution was the economic crisis and social unrest in Britain during the 1970s, attributed to the failure of the Keynesian model of economic management. Thatcher's revolution aimed to reduce the state's role in the economy, promote free-market capitalism, and increase individual responsibility and initiative. This involved privatizing state-owned industries, deregulating financial markets, and reducing the power of trade unions. These policies were controversial and resulted in significant social and economic changes in the UK, including rising inequality and unemployment, but they also contributed to the country's economic growth in the 1980s.