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. |
