In economics, the balance of payments are the accounts setting out a country' s transactions with the outside world. They are divided into various sub- accounts, notably the current account and the capital account. The former includes the trade account, which records the balance of imports and exports. Overall, the accounts must always be in balance. A deficit or surplus on the
balance of payments refers to an imbalance on a sub- account, usually the amount by which the foreign-exchange reserves of the government have been depleted or increased. The conventions used for presenting balance-of- payments statistics are those recommended by the International Monetary Fund. Research Balance of Payments
In economics, the balance of trade are the accounts setting out the results of a country's trading position. It is a component of the balance of payments, forming part of the current account. It includes both the visibles (i.e. imports and exports in physical merchandise) and the invisiblebalance (receipts and expenditure on such services as insurance, finance, freight, and tourism).
The balance is said to be 'in favour' of a country when the value of the exports is in excess of that of the imports and ' against it' when the imports are in excess of the exports. The phrases date from the days of the mercantile system, the characteristic doctrine of which alleged the desirability of regulating commerce with a view to amassing treasure by exporting produce largely, importing little merchandise in return, and receiving the balance in bullion. Research Balance of Trade
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
Research Balance of Payments
