Write any two differences between the balance of trade and balance of – InterviewSolution

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1.

Write any two differences between the balance of trade and balance of payment.

Answer»

Balance of Trade (BOT)	Balance of Payment (BOP)
1. Balance of Trade refers to the difference between amounts of exports and imports of visible items.	1. It is an accounting statement that provides a systematic record of all economic transactions, between residents of a country and the rest of the world in a given period of time.
2. BOT includes only visible items.	2. BOP includes visible items, invisible items, unilateral transfers and capital transfers.
3. It does not record any transactions of capital nature.	3. It records all transactions of capital nature.

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