Solution:
The trade balance is the difference between the
monetary value of exports and imports of output in an economy over a certain
period . Is the relationship between imports and exports of a country. A
positive balance is known as a trade surplus if it is exporting more than it
imports , a negative balance is known as a trade deficit or , informally , a
trade deficit. The balance of trade is sometimes divided by a combination of
goods and services.
The Invisible Balance balance transfer service is the part
of the trade balance with respect to the services and other products that do
not result in the transfer of physical objects . Examples include consulting
services , transportation services , tourism and income from patent licenses.
This figure is usually generated by the tertiary sector . The term "
invisible balance ' is especially common in countries that depend Kingdom.For
States exports and tourism services , the balance invisible is particularly
important. For example , the UK and Saudi Arabia are major international
revenue services financial , while Japan and Germany rely more on exports of
manufactured goods.
The current account balance is one of the two main measures
of the nature of a country's foreign trade ( the other is the net capital
outflow ) . The current account surplus increased net foreign assets of a
country by the corresponding amount , and a current account deficit does the
reverse . Both government and private payments are included in the calculation.
It is called the current account because goods and services are generally
consumed in the current period. The trade balance is the difference between a
country's exports of goods and services and imports of goods and services ,
taking into account all financial transfers , investments and other components.
A nation is said to have a trade deficit if it is importing more than it
exports .
The capital account : one of the two main components of the
balance of payments , the other being the current account. While the current
account reflects the net income of a country , the capital account reflects the
net change in national ownership of assets.
The surplus in the capital account means money is flowing
into the country but unlike a current account surplus , inflows will be
effective loans or asset sales rather than profits. A deficit in the capital
account is money that is flowing out of the country , but also suggests the
nation is increasing its claims on foreign assets. The term " capital
account " is used with a narrower meaning by the International Monetary
Fund ( IMF) and affiliates. The IMF is divided so that the rest of the world
calls the capital account into two first-level divisions : financial account
and capital account, by far most of the transactions recorded in the financial
account .
Accounts balance of payments ( BoP ) is an accounting record
of all monetary transactions between a country and the rest of world.These operations
include payments for the country's exports and imports of goods, services ,
financial capital and transfers financial . The balance of payments accounts
summarizes international transactions for a given period , usually one year,
and are prepared in a single currency, typically the domestic currency of the
country concerned . The sources of funds for a nation , such as exports or the
receipts of loans and investments , are recorded as positive or surplus items .
Use of Funds , and for imports or to invest abroad , are recorded as negative
or deficit items . When you include all the components of the accounts of the
balance of payments must sum to zero with no overall surplus or deficit . For
example , if a country is importing more than it exports , the trade balance
deficit , but the deficit will have to be countered by other means - such as by
funds earned from its foreign investments , by running the central bank
reserves or by receiving loans from other countries.
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