Post by account_disabled on Feb 27, 2024 8:34:52 GMT
If the value of exports is greater than the value of imports, the country has a trade surplus. Conversely, if the value of imports is greater than the value of exports, the country has a trade deficit. The main difference is that the balance of payments includes all of a country's international transactions, while the balance of trade only records trade transactions in physical goods. The balance of trade is just one component of the broader balance of payments. Also read " Trial Balance Definition, Functions and Examples in Business " The Purpose of Creating a Balance of Payments The Purpose of Creating a Balance of Payments balance of payments illustration. source envato.
Understand the role of the external sector in the country's economy The external sector has a role which is reflected in the large number of requests for domestic products by non-residents or vice versa. The greater demand for Job Function Email Database domestic products by non-residents in the country will be reflected and also valued in the country concerned. The greater the role of the external sector will determine the domestic product. . Know the flow of resources in each country By using the balance of payments , it will be known how much resources one country produces compared to other countries.
So, it will be seen whether the country is an exporter andor a capital country or vice versa, an importer of goods or a country that provides capital. . Knowing the Economic and Trade Structure in a Country By observing the development of the balance of payments , the general pattern of economic activity in a country that interacts with other countries will be known. Such as dependence on national income and also export proceeds on agricultural products and also dependence on sources of investment financing from other cooperating countries. . Knowing the existence of economic problems in a country By recording capital and financial transactions in the balance of payments.
Understand the role of the external sector in the country's economy The external sector has a role which is reflected in the large number of requests for domestic products by non-residents or vice versa. The greater demand for Job Function Email Database domestic products by non-residents in the country will be reflected and also valued in the country concerned. The greater the role of the external sector will determine the domestic product. . Know the flow of resources in each country By using the balance of payments , it will be known how much resources one country produces compared to other countries.
So, it will be seen whether the country is an exporter andor a capital country or vice versa, an importer of goods or a country that provides capital. . Knowing the Economic and Trade Structure in a Country By observing the development of the balance of payments , the general pattern of economic activity in a country that interacts with other countries will be known. Such as dependence on national income and also export proceeds on agricultural products and also dependence on sources of investment financing from other cooperating countries. . Knowing the existence of economic problems in a country By recording capital and financial transactions in the balance of payments.
