The balance of trade and balance of payments concepts are almost identical except that the latter considers foreign spending by the military.

Question

Quizplus · Accepted Answer

The balance of trade refers to the difference between a country's exports and imports of goods and services, while the balance of payments includes all economic transactions with the rest of the world, including trade, foreign investment, and financial transfers, not just military spending.

The Balance of Trade and Balance of Payments Concepts Are