Answer to Question #264183 in Economics for Jewel

Question

How do u solve the balance of a trade, invisible trade balance and balance on current account

Answer 1

Balance of trade (BOT) is the difference between the value of a country's exports and the value of a country's imports for a given period.

An invisible trade is an international transaction that does not include an exchange of tangible goods. Customer service outsourcing, overseas banking transactions, and the medical tourism industry all are examples of invisible trade.

The current account balance of payments is a record of a country's international transactions with the rest of the world. The current account includes all the transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities.