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Difference between Balance of trade and Balance of payment

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Difference between Balance of trade and Balance of payment

Difference between Balance of trade and Balance of payment:


Basis of Difference
Balance of trade
Balance of payment
1. Definition
It is the difference between the total volume of export and import of visible items of a country with the rest of the world.
It is the systematic record of receipts and payments of a country with the rest of the world.
2. Inclusion of goods
It includes only visible goods.
It includes both visible and invisible goods and services.
3. Economic performance
It does not show the entire economic performance of a country.
It shows the entire economic performance of a country.
4. Concept
It is a narrow concept.
It is a broad concept.

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