Chapter 10: Foreign Trade of India Q.3. Distinguish between the following 2. Balance of payments and Balance of trade

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter 10: Foreign Trade of India

Q.3. Distinguish between the following

2. Balance of payments and Balance of trade.

Basic for comparison	Balance of payments	Balance of trade
Meaning	Balance of Payment is a statement that keeps track of all economic transactions done by the country with the remaining world.	Balance of Trade is a statement that captures the country's export and import of goods with the remaining world.
Records	Transactions related to both goods and services are recorded.	Transactions are related to goods only.
Result	Both the receipts and payment sides tallies.	It can be Favorable, Unfavorable, or balanced.
Capital Transfers	Balance of Payment is included.	The Balance of Trade is not included.
Component	Current Account and Capital Account.	It is a component of the Current Account of Balance of Payment.