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The difference between the value of imports and exports of a country is the balance of trade. It is a country's largest component of balance of payments.
Balance of payments
balance of payments
It does have a surplus in balance of payments because BOP is calculated by exports minus imports
The balance of payments is an accounting record of the difference between the amount of money that a country receives (known as inpayments) and the amount of money that it pays out (known as outpayments).
A positive overall balance of payments means that a country has realized more aggregate inpayments than outpayments over a period (typically one year).
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
The difference between the value of imports and exports of a country is the balance of trade. It is a country's largest component of balance of payments.
Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. They include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.None of the following is included.
It does have a surplus in balance of payments because BOP is calculated by exports minus imports
Balance of payments
balance of payments
It does have a surplus in balance of payments because BOP is calculated by exports minus imports
foreign inflation rates
Their treasury calculates the income gained from all their exports, and expenditure lost from all their imported goods. That difference between the two figures, gives the balance of payments.
The balance of payments is an accounting record of the difference between the amount of money that a country receives (known as inpayments) and the amount of money that it pays out (known as outpayments).
Features of Balance of Payments Balance of Payments has the following features: (i) It is a systematic record of all economic transactions between one country and the rest of the world. (ii) It includes all transactions, visible as well as invisible. (iii) It relates to a period of time. Generally, it is an annual statement. (iv) It adopts a double-entry book-keeping system. It has two sides: credit side and debit side. Receipts are recorded on the credit side and payments on the debit side. (v) When receipts are equal to payments, the balance of payments is in equilibrium; when receipts are greater than payments, there is surplus in the balance of payments; when payments are greater than receipts, there is deficit in the balance of payments. (vi) In the accounting sense, total credits and debits in the balance of payments statement always balance each other.