Balance of payments

Business studies study module

This is the difference in the sum of visible and invisible export and the visible and invisible imports.  If positive then it means the country is having favourable terms, while if negative, then it means unfavourable It goes beyond the balance of trade in that it considers the following

  • The countries visible/tangible export and import of goods (visible trade)
  • The countries invisible/services exported and imported in the country (invisible trade)
  • The inflow and outflow of investment (capital goods)

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