Economics

Question

Distinguish between balance of trade and balance on current account.

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Studies Simran Sharma 3 months 2 Answers 50 views Silver 0

Answers ( 2 )

  1. The trade deficit is the largest component of the current account deficit and refers to a nation’s balance of trade, or the relationship between the goods and services it import and export. The balance of payment is the sum of all transactions between a nation and all of its international trading partners. In addition to the trade deficit, the current account deficit includes factor income and financial transfer.

  2. The trade deficit is the largest component of the current account deficit and refers to a nation’s balance of trade, or the relationship between the goods and services it import and export. The balance of payment is the sum of all transactions between a nation and all of its international trading partners.

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