Question

What is the difference between the balance of payment and the balance of trade?

Answer 1

The difference between the balance of payment and the balance of trade is that the balance of payment records all the economic transactions that take place in a country within a particular period.

Whereas, the balance of trade keeps a track of all the imports and exports done by the country with other countries within a particular period.

Also read:

• Balance of Trade Vs Balance of Payment
• Balance of Payments Surplus and Deficit
• Balance of Payment
• Balance of Payments Formula

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