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The 'Balance of Payments' of any country is the difference between the money made by exporting goods against money spent on importing goods from overseas.
Take a simple example.... A country sells 100 billion worth of cars to Another Country - BUT - at the same time, imports 20 billion worth of grain. The balance of payments on that single transaction is -80 billion, because the country made more selling the cars than it spent on importing grain.
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Can a nation have a favorable balance of trade and an unfavorable balance of payments?
Yes, as the balance of trade is only one part of the balance of payments
How does balance of trade differ from balance of payments?
Balls and weiners!
Effect of persistent deficit in balance of payments?
A persistent deficit in the balance of payments leads to an individual not paying their way. Society as a whole can get into a deficit when many people are defaulting on payments.
What institution provides the primary source of similar statistics for balance of payments and economic performance worldwide?
The primary source of similar statistics for balance of payments and economic performance worldwide is theInternational Monetary Fund, Balance of Payments Statistics.
What are the Objectives of balance of payments?
The objective of balance of payments is to keep track of spending and savings to determine your financial goals. This system is a macroeconomic goal.
