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Balance of Trade

Balance of Trade

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Published by Ajay Kulkarni

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Categories:Business/Law
Published by: Ajay Kulkarni on Apr 22, 2010
Copyright:Attribution Non-commercial

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11/06/2012

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Balance of Trade
Accounting for International Exchange
 
Obj
ective: Distinguish
b
etween the
b
alance of tradeand the Balance of Payments
Balance of Trade:
T
he differencebetween exports andimports of goods
Trade Deficit:
O
ccurs when a county¶simports of goods andservices exceeds itsexports in a given timeperiod. {X-M) isnegative}
Balance of Payments
A system of accounts thatmeasures transactionsof goods, services,income and financialassets betweendomestic household,businesses, andgovernments andresidents of the rest of the world during aspecific time period
 
The real thing.

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