Balance of trade is part of current account balance. The balance of payment is the record of dealings in goods, services and assets, between the citizens of the nation and the rest of the world.

Current Account and Capital Account. The current account is essentially exports – imports (+net international investment balance) It is also worth noting that if we have a current account deficit, in a floating exchange rate this must be balanced by a surplus on the financial/capital account. The trade balance is the difference between exports and imports.

Key Terms. In other words the current account balance equals the balance of trade on goods and services, including interest and dividend income, plus net inflows of transfer payments. Your question sounds more like economics than accounting. foreign exchange: The changing of currency from one country for currency from another country.

Balance of payment is computed by summing up the reserve balance, current accounts balance, and capital accounts balance. net exports: The difference between the monetary value of exports and imports. The Current Account – The current account records, or short-term, flows of funds into and out of a country. It may measure visible (merchandise) trade only, or trade in both goods and services. The balance on each of these accounts is found by taking the difference between exports and imports.

They are taken into account as “Net Exports”. It is divided into two parts, i.e. In other words, the current account balances out the financial account and the balance of payments is zero. The balance of payment is the record of dealings in goods, services and assets, between the citizens of the nation and the rest of the world. Invisibles are difficult to measure, so the balance of trade in goods and services is less reliable and more likely to be revised than the visible balance. ... Countries vary considerably in regard to how important imports and exports, and their overall balance of trade, are. The current account balance is defined by the sum of the value of imports of goods and services plus net returns on investments abroad, minus the value of exports of goods and services, where all these elements are measured in the domestic currency. But if accounting, it may apply to a specific industry which I have no knowledge about. However, in economics trade balance is the net amount between a country’s export and import. It is divided into two parts, i.e. ... also known as the trade balance, refers to the difference between the monetary value of a country’s imports and exports over a given time period. It’s also worth mentioning that the current account balance equals the savings- investment gap for the economy, as seen in the following formula:


In addition to balance of trade, current account balance also includes income balance and unilateral transfer. Not too bad.

Key Difference – Capital Account vs Current Account Capital account and current account are the two key elements of the ‘Balance of Payments’ (BoP), which records a country’s economic transactions with other countries over a period of time.
The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain time period.