BALANCE OF PAYMENT

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BALANCE OF PAYMENT: This is the relationship between a country’s total payments to other countries and its total receipts from those countries. A country’s balance of payments account is divided into two parts viz:

  1. Current Account: This deals with payments and receipts for goods and services. It shows the income and expenditure on both visible and invisible trade.
  2. Capital Account: This deals with payments and receipts for services rendered to a country by another country. It shows the actual transfers of money from one country to the other through private (individual) and official (government) capital investments.
Others are Viewing:
  1. CAUSES OF UNFAVOURABLE BALANCE OF PAYMENT
  2. BALANCE OF TRADE
  3. FAVOURABLE BALANCE OF PAYMENTS
  4. UNFAVOURABLE BALANCE OF PAYMENTS
  5. WAYS OF CORRECTING DEFICIT/UNFAVOURABLE BALANCE OF PAYMENTS
  6. TERMS OF TRADE
  7. THE LAW OF COMPARATIVE ADVANTAGE

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