Difference b/w balance of trade and payment

Balance of payment Balance of trade The difference b/w the value of commodity exports and value of commodity imports is called as BALANCE OF TRADE It is included under the current account transactions of the balance of payment Balance of trade may be favourable or unfavourable,when the value of commodity export is more than the value of commodity import then its is favourable and when value of commodity export is less than commodity import means it is unfavourable

Differenc b/w BOP AND BOT Balance of payment 1)it includes both visible and invisible items 2)it includes the items of current and capital acc transactions 3)it gives a broader picture of a countrys economic transactions 4)it tallies all, never shows a balance 5)wider in scope 6)apart from BOT includes visible items

7)it represents a better and realistic picture of a countrs financial and economic transactionswith the rest of the world

Balance of trade 1)it includes invisible items only 2)it includes only the items of current acc 3)it gives a narrow picture 4)it always shows a balance 5)it is amajor component of BOP 6)narrow scope 7)it doesnt represent clear and realistic piture