Monday, December 12, 2011

Difference between trade balance and current account balance?

Can anyone explain the difference between trade balance and current account balance?





Thanks|||The current account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid).





Trade Balance is the difference between exports and imports.|||Trade balance: visible exports and imports.


Current account balance: Visible exports and imports + invisible exports imports.

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