Differentiate between balance of trade and current account balance.

Asked by Topperlearning User | 19th Apr, 2016, 10:54: AM

Expert Answer:

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