Balance of Payment:
Meaning of Balance of Payment:
The balance of trade of a country shows its trade transections with the rest of the world during a transaction year. The balance of trade takes into account only visible exports and imports. It indicates the relationship between the aggregate value of export and the aggregate value of imports during the course of a year.
The balance of payments of a country is an annual record its monetary transactions with other countries of the world. Balance of payments reflects the true economic position of a country.