Question

Distinguish between balance of trade and balance of payments. 

Answer 1

BALANCE OF TRADE (BOT)	BALANCE OF PAYMENT (BOP)
BOT is the difference between the amounts of exports and imports of visible items (goods).	It is complete statement of all the payments received from abroad & all the payments remitted to abroad.
It includes all the visible items which are tangible & have physical existence.	It includes all visible, invisible items, transfer payments, capital transactions etc.
It is a part of BOP, so it is narrow concept	It is wider concept which includes BOT.