Practicing Success
The difference between value of exports and value of imports of goods of a country in a given period of time is. |
Balance of Payment Balance of Trade Balance of Capital Account Balance of Invisibles |
Balance of Trade |
The correct answer is option (2) : Balance of Trade Balance of Trade: It represents the difference between the value of a country's exports and imports of goods over a specific period (usually a year). If exports exceed imports, it is a trade surplus (positive balance), and if imports exceed exports, it is a trade deficit (negative balance). The other options mentioned are related to different aspects of a country's overall balance of payments: 1. Balance of Payments : This includes both the balance of trade (goods) and the balance of services (services) along with financial and capital transactions. It represents a more comprehensive view of a country's international financial transactions. 3. Balance of Capital Account : This accounts for capital flows, such as foreign investments and loans, into and out of the country. 4. Balance of Invisibles : This term typically refers to the balance of services and income in the balance of payments. It includes items like tourism, shipping, insurance, and investment income. |