Question

Answer briefly each of the following questions.
Write any two differences between balance of trade and balance of payment.

Answer 1

Balance of trade	Balance of payment
Balance of trade refers to the difference between export of merchandise and import of merchandise of a country.	Balance of payment refers to the overall balance, when the current account balance and capital balance are added up.
Balance of trade= export of material goods - import of material goods	Balance of payments= balance on current account BOP + balance on capital account BOP.