Advertisement Remove all ads

Distinguish between Balance of payments and Balance of trade. - Economics

Distinguish Between

Distinguish between Balance of payments and Balance of trade.

Advertisement Remove all ads

Solution

  Balance of payments Balance of trade
1) It is a systematic record of all international economic transactions of a country during a given period, usually a year. It refers to the difference between the value of a country’s exports and imports for a given period.
2) It is defined as “a summary statement of all the transactions between the residents of one country and the rest of the world.” It is defined as “the relation over a period between the values of her exports and imports of physical goods.”
3) It includes the value of the exchange of goods and services among citizens, businessmen, firms, government, etc. It includes the value of imports and exports of visible goods and invisible goods.
4) Balance of payment is broader concept than balance of trade. Balance of trade is a part of balance of payment.
Concept: Concept of Balance of Payments
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 10 Foreign Trade of India
Exercise | Q 3. (3) | Page 98
SCERT Maharashtra Question Bank 12th Standard HSC Economics Maharashtra State Board 2021
Chapter 10 Foreign Trade of India
Distinguish Between | Q 3
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×