BANKING AFFAIRS

Detailed explanation-1: -In balance of payments, the difference between visible or tangible exports and visible or tangible imports of a domestic country with the rest of the world is known as Balance of Trade. It is the difference between the top most items of balance of payment.

Detailed explanation-2: -The visible trade balance (merchandise trade balance) is that part of the balance of trade figures that refers to international trade in physical goods, but not trade in services; it thus contrasts with the invisible balance. The balance is calculated as the value of visible exports less the value of visible imports.

Detailed explanation-3: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of a country’s imports for a given period. Balance of trade is the largest component of a country’s balance of payments (BOP).

Detailed explanation-4: -Invisible exports are services provided to people living abroad; ‘visible’ exports are the physical goods sold abroad.

Detailed explanation-5: -Fundamental Difference Balance of trade (BoT) is the difference that is obtained from the export and import of goods. Balance of payments (BoP) is the difference between the inflow and outflow of foreign exchange.