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Difference Between Balance of Trade and Balance of Payment

Updated on 13-Oct-2022 11:19:47
Introduction When an economy makes a transaction with another country, it gives rise to the need to record those transactions to understand whether an economy is in profit or not. One is the Balance of Payments and the other is Balance of trade. Let us dive deep into the concept of these accounts to understand the difference between them. Balance of Trade As the name suggests, Balance of Trade represents the record of imports and export from one country to another. As we know, if the export of a country is higher than the import it is in trade surplus, ... Read More