"The net difference between exports and imports (or receipts and payments) of visible of tangible goods".
The International trade consists of exchange in value of goods as well as services. While balance of payments shows the difference between receipts and payments, it incorporates both the visible goods and invisible goods. Whereas, balance of trade only shows the difference between receipts and payments of the visible goods. Therefore, for comprehensive analysis, balance of payment is more referred to than balance of trade.
The International trade consists of exchange in value of goods as well as services. While balance of payments shows the difference between receipts and payments, it incorporates both the visible goods and invisible goods. Whereas, balance of trade only shows the difference between receipts and payments of the visible goods. Therefore, for comprehensive analysis, balance of payment is more referred to than balance of trade.
