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Balance of Trade and Balance Payments Homework Help

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Grab the Best Balance of Trade and Balance of Payments Homework Help

If you want to maintain the record of all economic transactions between a country with the other parts of the world is called the balance of payments. On the other hand, the difference in the export and import value of all visible items is called the balance of trade. Do you wish to get a clear view of these two concepts? In that case, you can consider balance of trade and balance of payments homework help from myhomeworkhelp.com.

Know more about balance of trade:

  • In today’s fast paced world, all countries are importing and exporting their products.
  • If a country faces trade deficit, it is likely to import more than it can export
  • On the other hand, if the country has trade surplus, then it will export more than it can import
  • The balance will work favorable if the value of exports is more than that of imports.
  • The balance will be unfavorable, if the import value exceeds that of the export value.

You can simply consider balance of trade and balance of payments homework help in order to get a vivid idea of this. You can get a better view by analyzing the difference between balance of trade and balance of payments.

What are the differences between balance of trade (BOT) and balance of payment (BOP):

  • BOT keeps a record of only transaction between the goods. Whereas, BOP records the transactions which are related to both services and goods
  • BOT is actually a part of BOP’s current account and BOP includes balance of services, balance of trade, balance of capital transactions and balance of unilateral transfers
  • BOT fails to keep record of capital transactions while BOP can record the transactions of all capital nature.
  • BOT may be of equilibrium, favorable and unfavorable nature. Whereas, BOPis always present in the balance and the receipt side made equal to thepayment side.
  • BOT can’t be considered as a true indicator to determine the economic prosperity of a country. BOP on the other side indicates the true economic performance by a country.
  • Any defect or error in BOT can’t be corrected by BOP but any kind of defect in BOP can be corrected through BOT.

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