Distinguish between balance of payment and balance of trade
Answers
Answer:
Balance of payments is the overall record of all economic transactions of a country with the rest of the world. Balance of trade is the difference in the value of exports and imports of only visible items. Balance of trade includes imports and exports of goods alone i.e., visible items.”
Answer:
Difference Between Balance of Trade and Balance of Payments
Last updated on July 26, 2018 by Surbhi S
BOT vs BOPAfter the implementation of globalization policy, world has become a small village and now every contry freely transacts with the other countries of the world. In this context, two statements are prepared to keep a record of the transactions made by the country internationally; they are Balance of Trade (BOT) and Balance of Payments (BOP). The balance of payment keeps a track of transaction in goods, services, and assets between the country’s residents, with the rest of the world.
On the other hand, the balance of exports and import of the product and services is termed as Balance of Trade.
The scope of BOP is greater than BOT, or you can also say that Balance of Trade is a major section of Balance of Payment. Let’s understand the difference between Balance of Trade and Balance of Payment in the article given below.