ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of its imports for a given period.

Detailed explanation-2: -The trade balance is the difference between the value of the goods that a country (or another geographic or economic area such as the European Union (EU) or the euro area) exports and the value of the goods that it imports.

Detailed explanation-3: -The balance of trade is the difference between a country’s exports and imports of goods, while the balance of payments is a record of all international economic transactions made by a country’s residents, including trade in goods and services, as well as financial capital and financial transfers.

Detailed explanation-4: -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. Transactions related to goods are included in BoT. Transactions related to transfers, goods, and services are included in BoP.

Detailed explanation-5: -Exporting refers to the selling of goods and services from the home country to a foreign nation. Whereas, importing refers to the purchase of foreign products and bringing them into one’s home country.