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Balance of trade refer to the total value of goods sold and bought by a a country during a given period, usually a year. visible exports equal visible imports in monetary terms we have balance of trade. A positive balance of trade means that a country is exporting more in monetary terms than it is importing while a negative or unfavorable balance of trade means that a country is importing more in monetary terms than it is exporting.
Balance of payments:
Balance of payments can be defined as as statement or record showing the relationship between a country's total payments to other countries and it total receipts from them in a year. A country's balance of payment can be divided in three parts, namely: current account, capital account and monetary movement account.
Favourable balance of payments
Favourable balance of payment occurs when the receipt from invisible and visible export trade is greater than payment to other countries on invisible and visible imports trade. A credit balance can be used to increase investment abroad or to add to a country's gold reserve.
Unfavorable balance of payment:
Unfavorable balance of payments is used for a debit balance in the balance of payments. It means that payment on visible and invisible imports is greater than receipt on visible and invisible exports.
Balance of payments:
Balance of payments can be defined as as statement or record showing the relationship between a country's total payments to other countries and it total receipts from them in a year. A country's balance of payment can be divided in three parts, namely: current account, capital account and monetary movement account.
Favourable balance of payments
Favourable balance of payment occurs when the receipt from invisible and visible export trade is greater than payment to other countries on invisible and visible imports trade. A credit balance can be used to increase investment abroad or to add to a country's gold reserve.
Unfavorable balance of payment:
Unfavorable balance of payments is used for a debit balance in the balance of payments. It means that payment on visible and invisible imports is greater than receipt on visible and invisible exports.
