The document defines balance of payments and balance of trade. Balance of payments is a record of all financial transactions between a country and others over a period, including exports and imports. It is negative if more money flows out than in. Balance of trade is the difference between a country's exports and imports, and is the largest part of its balance of payments. It is in deficit if imports are greater than exports, and in surplus if exports are greater.
The document defines balance of payments and balance of trade. Balance of payments is a record of all financial transactions between a country and others over a period, including exports and imports. It is negative if more money flows out than in. Balance of trade is the difference between a country's exports and imports, and is the largest part of its balance of payments. It is in deficit if imports are greater than exports, and in surplus if exports are greater.
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The document defines balance of payments and balance of trade. Balance of payments is a record of all financial transactions between a country and others over a period, including exports and imports. It is negative if more money flows out than in. Balance of trade is the difference between a country's exports and imports, and is the largest part of its balance of payments. It is in deficit if imports are greater than exports, and in surplus if exports are greater.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
BALANCE OF PAYMENT AND BALANCE OF TRADE. 10 years data with your analysis
Definition of 'Balance Of Payments - BOP'
A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports and imports, including all financial exports and imports. A negative balance of payments means that more money is flowing out of the country than coming in, and vice versa.
Definition of 'Balance Of Trade - BOT'
The difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy. A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.