International trade is an essential component of the global economy. Countries trade with each other to obtain goods and services that they do not produce domestically or to obtain them at a lower cost than producing them domestically. Trade between countries is recorded in the balance of payments (BOP) and balance of trade (BOT) accounts. These accounts are critical to … [Read more...] about Top 13 Difference Between Balance of Trade and Balance of Payments
Managerial Economics
What is Equilibrium and Disequilibrium in Balance of Payments?
Equilibrium in the balance of payments refers to a situation where a country's total payments for imports of goods and services, and capital outflows, are equal to its total receipts from exports of goods and services and capital inflows. In other words, there is a balance between the country's outflows and inflows of foreign currency. Disequilibrium in the balance of … [Read more...] about What is Equilibrium and Disequilibrium in Balance of Payments?
7 Different Types of Disequilibrium in Balance of Payments
Disequilibrium in the balance of payments occurs when there is an imbalance between a country's payments to and receipts from other countries. The balance of payments is a record of all the financial transactions between a country and the rest of the world, including imports and exports of goods and services, capital flows, and financial transfers. If a country is … [Read more...] about 7 Different Types of Disequilibrium in Balance of Payments
21 Causes of Disequilibrium in Balance of Payment
The balance of payments is a record of all economic transactions between a country and the rest of the world over a certain period of time. A balance of payments deficit or surplus occurs when a country's total payments for goods, services, and capital outflows exceed or fall short of its total receipts from the rest of the world. A disequilibrium in a country’s Balance … [Read more...] about 21 Causes of Disequilibrium in Balance of Payment
21 Measures to Correct Disequilibrium in Balance of Payment
A balance of payments (BOP) disequilibrium occurs when there is an imbalance between a country's international payments and receipts. If a country has a deficit in its BOP, it means that it is importing more goods and services than it is exporting or that it is paying out more money to foreign investors than it is receiving. Conversely, if a country has a surplus in its BOP, … [Read more...] about 21 Measures to Correct Disequilibrium in Balance of Payment