Yes, as the balance of trade is only one part of the balance of payments
it shows up as a trade deficit with the soncumer-goods-exporting nation.
Was to enrich the nation by fostering a favorable balance of trade.
A situation that exists when the value of a nation's exports is in excess of the value of its imports.
positive
One last category of international transactions involves those arising among governments and central banks. These transactions are recorded in the official reserve account of a nation's balance of payments.
it shows up as a trade deficit with the soncumer-goods-exporting nation.
Was to enrich the nation by fostering a favorable balance of trade.
A surplus in the balance of payments is when a nation has an increase in flow of funds from trade and investments coming in than paying out to other countries. Income from tourism increases the flow of funds into the economy from people of other countries. It results in the flow of foreign currency into the country and is a revenue to the country resulting in a favorable balance of payment.
A situation that exists when the value of a nation's exports is in excess of the value of its imports.
positive
One last category of international transactions involves those arising among governments and central banks. These transactions are recorded in the official reserve account of a nation's balance of payments.
Balance of payments: A systematic record of a nation's total payments to foreign countries, including the price of imports and the outflow of capital and gold, along with the total receipts from abroad, including the price of exports and the inflow of capital and gold. Balance of trade The difference in value between the total exports and total imports of a nation during a specific period of time.
Cash payments for losses suffered during a war are called reparations. Reparations are paid to the victorious nation by the defeated nation.
In order to examine a country's position in international trade, it is useful to consult two of the most frequently used statistics, the balance of trade and the balance of payments. When you hear on the news about the U.S. "trade balance," what you are usually hearing about is the merchandise trade balance, which is the difference between a nation's exports and imports of merchandise. A "favorable" merchandise balance of trade, or trade surplus, occurs when a country's exports exceed its imports. A "negative" balance of trade, or trade deficit, occurs when a country's imports exceed its exports. From the mid-1970s, throughout the 1980s and into the 1990s, the United States has run persistent trade deficits. Economists disagree as to the effects this has had on the economy, but it is certain that these deficits allowed foreigners to accumulate U.S. dollars earned in payment for products that Americans imported The balance of trade, however, is not the whole picture; it includes only purchases and sales of merchandise. The complete summary of all economic transactions between a country and the rest of the world--involving transfers of merchandise, services, financial assets and tourism--is called the balance of payments. Simply, any transaction that results in money flowing into the country is a balance of payments credit, and anything that draws money out of the country is a balance of payments debit. Balance of payments deficits, where the amount of money leaving the country is greater than the amount flowing in, need to be financed; extra money has to come from somewhere. Usually, payments deficits are financed by borrowing money from overseas. The balance of payments for a country is separated into two main accounts: the current account and the capital account. The current account records sales and purchases of goods, services and interest payments. The entire merchandise trade balance is contained in the current account. The capital account deals with investment items, like whole companies, stocks, bonds, bank accounts, real estate and factories. Thus, if you bought a parachute from a factory in Germany, your purchase would be recorded in the current account. But if you bought the entire parachute factory, your purchase would be in the capital account. The balance of payments is influenced by many factors, including the financial and economic climate of other countries. For example, if other countries want the services of U.S. doctors, bankers, lawyers, accountants, engineers, entertainers and other service-providers, that demand will play a significant role in the U.S. balance of payments. Large amounts of money flow between nations in payment for such services, even if no merchandise is exchanged. In 1991, service exports accounted for over one-quarter of total U.S. export
Most favored nation
Helps the balance.
constituents and the nation