The major factor affecting a nation's balance of payments is

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The balance of payments is a record of a country's trade and financial transactions with the rest of the world over a particular time period. If a country's rate of inflation is higher than that of its trading partners, it will become less competitive, as its goods and services will become more expensive relative to those of its competitors. This will result in a decrease in exports, an increase in imports, and a deterioration in the country's balance of payments. Conversely, if a country's rate of inflation is lower than that of its trading partners, it will become more competitive, resulting in an improvement in its balance of payments.

The Major Factor Affecting a Nation's Balance of Payments Is