What is a Balance of trade?

Balance of trade is just a smaller part of balance of payments. Balance of payments is a statement which summarizes the balance of trade, the balance of services, balance of unilateral transfers, and balance of payment on capital account.    The idea behind the balance of payment is to see whether export of goods of a…

What is Balance of Payments (BOP)?

The term balance of payments (BOP) imply that the balance of all financial exchanges between one country and another country of the rest of the world, made up of the current account (visible and invisible trade) and capital account (capital movement) and financial transfers excluding Central Bank’s reserve. If the inward supply of funds such…