Differentiate between balance of trade and current account balance.
Asked by Topperlearning User | 19th Apr, 2016, 10:54: AM
Balance of trade means the balance occurring on account of export and import of visible items.
Current account balance includes the export and import of goods and services and unilateral transfers from one country to another country.
Hence, the balance of trade is only a component of current account balance.
Answered by | 19th Apr, 2016, 12:54: PM
- What are the two transactions which determine balance of trade?
- Define balance of payment.
- Define balance of payments on current account.
- Define balance of payments on capital account.
- Define autonomous items in balance of payment.
- Explain a situation where the balance of payment is deficit.
- Differentiate autonomous and accommodating items of balance of payment.
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