Differentiate between Balance of Trade and Balance of Payments.

Answer»

Balance of Trade	Balance of Payments
(i) It refers to the difference between the value of exports and imports of only visible items, during a particular period of time.	(i) It refers to difference between the value of exports and imports of both visible and invisible items, during a particular of time.
(ii) It is a narrow concept.	(ii) It is a broader concept.
(iii) It may not show the international economic position of an economy.	(iii) It shows the international economic position of the country.
(iv) It gives partial picture of international transactions.	(iv) It gives a complete picture of international transactions.

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