SlideShare une entreprise Scribd logo
BALANCE OF TRADE
AND
BALANCE OF PAYMENT
Prepared By:
Mohammad Shahnawaz
(Assistant Professor)
MBA (UGCNET-Management)
MA (UGCNET- Education)
M.A. (Economics)
B.Ed.
BALANCE OF TRADE
MEANING:
Records the volume of Goods and
Services exported as well as imported
by a country to other country.
 Record of trade between two countries.
Total Export-Total Import=Balance of Trade
TYPES OF BALANCE OF TRADE (BoT)
1. Favorable BoT- Importing less Exporting more.
 Also known as Positive balance of trade.
2. Unfavorable BoT- Importing more Exporting less.
 Also known as Negative balance of trade.
BALANCE OF PAYMENT (BoP)
 It is the record of all economic transactions between the
residents of the country and the rest of the world in
particular period of time.
 Record of nation’s financial transactions in Goods and
Services with rest of the world in a single accounting year.
Factors Causing BoP Disequilibrium
1.Political Factor
Political uncertainty, economic instability, war, etc.
2.Social Factor
Changing culture, taste, preferences and fashion, rate of
urbanization, etc.
3.Economic Factor
 Structural changes in the economy, inflation,
development expenditure, etc.
4.Natural Factor
 Natural calamities like flood, earthquake, tsunami,
drought, etc.
Measure to correct BoP
Disequilibrium
1. Devaluation
 Official reduction of the external values of a currency.
 It helps to reduce imports and increase export by
making imports costlier and exports cheaper.
2.Deflation
 It indicates fall in the price of commodity.
 It would make the products cheaper in foreign
markets.
3.Export Promotion
 This includes tax concession to exporters, subsidies,
encouraging export production, etc.
4. Tariffs and Quotas
 When tariffs are imposed, price of imports increase
and this will reduce the demand for imported Goods.
 Under quota system government may fix quota of
commodity to be imported.
5. Non-tariff barriers
 One country’s government completely prohibits trade
with another country.
THANK YOU

Contenu connexe

Tendances

Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
BinduHA
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Nithin Kumar
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
rana ayaz mehmood
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
hiedi
 
Balance of trade presentation
Balance of trade presentationBalance of trade presentation
Balance of trade presentation
Muhammad Talha Khan
 
Balance of Payment
Balance of Payment Balance of Payment
Balance of Payment
Jay Raval
 
Ifm components of bop
Ifm components of bopIfm components of bop
Ifm components of bop
Bharathi suneela
 
Brief PPT on Balance of payment Vs Balance of Trade
Brief PPT on Balance of payment  Vs Balance of TradeBrief PPT on Balance of payment  Vs Balance of Trade
Brief PPT on Balance of payment Vs Balance of Trade
Shubham Parsekar
 
Balance of Trade and Balance of Payment
Balance of Trade and Balance of PaymentBalance of Trade and Balance of Payment
Balance of Trade and Balance of Payment
AkankshaDarvatkar
 
Trade Deficit
Trade DeficitTrade Deficit
Trade Deficit
efinancemanagement.com
 
The Balance Of Payments
The Balance Of PaymentsThe Balance Of Payments
The Balance Of Payments
itsvineeth209
 
Balance of payment disequilibrium
Balance of payment disequilibriumBalance of payment disequilibrium
Balance of payment disequilibrium
Kunthavai ..
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
Ashish Kumar
 
Balance of payment chapter 5
Balance of payment chapter 5Balance of payment chapter 5
Balance of payment chapter 5
Nayan Vaghela
 
Balence of payments of India
Balence of payments of IndiaBalence of payments of India
Balence of payments of India
Nilesh Patil
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
shelly hanspal
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTS BALANCE OF PAYMENTS
BALANCE OF PAYMENTS
ANOOPA NARAYANAN
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
Taha Yaseen
 
Balance of Payment(BOP)
Balance of Payment(BOP)Balance of Payment(BOP)
Balance of Payment(BOP)
Umar Jalil
 
Balance of payment adjustment through fiscal policy an obseration
Balance of payment adjustment through fiscal policy  an obserationBalance of payment adjustment through fiscal policy  an obseration
Balance of payment adjustment through fiscal policy an obseration
hemant sonawane
 

Tendances (20)

Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of trade presentation
Balance of trade presentationBalance of trade presentation
Balance of trade presentation
 
Balance of Payment
Balance of Payment Balance of Payment
Balance of Payment
 
Ifm components of bop
Ifm components of bopIfm components of bop
Ifm components of bop
 
Brief PPT on Balance of payment Vs Balance of Trade
Brief PPT on Balance of payment  Vs Balance of TradeBrief PPT on Balance of payment  Vs Balance of Trade
Brief PPT on Balance of payment Vs Balance of Trade
 
Balance of Trade and Balance of Payment
Balance of Trade and Balance of PaymentBalance of Trade and Balance of Payment
Balance of Trade and Balance of Payment
 
Trade Deficit
Trade DeficitTrade Deficit
Trade Deficit
 
The Balance Of Payments
The Balance Of PaymentsThe Balance Of Payments
The Balance Of Payments
 
Balance of payment disequilibrium
Balance of payment disequilibriumBalance of payment disequilibrium
Balance of payment disequilibrium
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Balance of payment chapter 5
Balance of payment chapter 5Balance of payment chapter 5
Balance of payment chapter 5
 
Balence of payments of India
Balence of payments of IndiaBalence of payments of India
Balence of payments of India
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTS BALANCE OF PAYMENTS
BALANCE OF PAYMENTS
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of Payment(BOP)
Balance of Payment(BOP)Balance of Payment(BOP)
Balance of Payment(BOP)
 
Balance of payment adjustment through fiscal policy an obseration
Balance of payment adjustment through fiscal policy  an obserationBalance of payment adjustment through fiscal policy  an obseration
Balance of payment adjustment through fiscal policy an obseration
 

Similaire à Balance of Trade and Balance Payment by shahnawaz

Balance of Trade and Balance of Payments
Balance of Trade and Balance of PaymentsBalance of Trade and Balance of Payments
Balance of Trade and Balance of Payments
Mahendra Kumar Ghadoliya
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
Dhina Karan
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
namanjain221
 
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkmsaurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
RishiYadav307723
 
India's bop position 2013
India's bop position 2013India's bop position 2013
India's bop position 2013
ACHUTHAN J K
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
Jyoti Rastogi
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
Sunit Mondal
 
Disequilibrium in Balance of Payment
Disequilibrium in Balance of Payment Disequilibrium in Balance of Payment
Disequilibrium in Balance of Payment
Vijyata Singh
 
What is Economy
What is EconomyWhat is Economy
What is Economy
Abhilashbhai
 
Assignment economics (ECON 1550)
Assignment economics (ECON 1550)Assignment economics (ECON 1550)
Assignment economics (ECON 1550)
Ain Nur Syazwani
 
M egha panwar iii sem(ssei 98) - copy
M egha panwar iii sem(ssei 98) - copyM egha panwar iii sem(ssei 98) - copy
M egha panwar iii sem(ssei 98) - copy
Kokil Gupta
 
India’s foreign trade
India’s foreign tradeIndia’s foreign trade
India’s foreign trade
Rajalakshmi K
 
Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)
Suryansh Bansal
 
Balance Of Payment
Balance Of PaymentBalance Of Payment
Balance Of Payment
sarthakjain218
 
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvcbop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
wexop40522
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTSBALANCE OF PAYMENTS
BALANCE OF PAYMENTS
SagarDuttPhuloria
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
Akshay Singh
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
madan kumar
 
Balance of payment
Balance of paymentBalance of payment
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
VINAY KENKERE
 

Similaire à Balance of Trade and Balance Payment by shahnawaz (20)

Balance of Trade and Balance of Payments
Balance of Trade and Balance of PaymentsBalance of Trade and Balance of Payments
Balance of Trade and Balance of Payments
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkmsaurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
saurabh bop.pptxtrsgftxkmh,xgjc.j,xjgfmkghxkm
 
India's bop position 2013
India's bop position 2013India's bop position 2013
India's bop position 2013
 
BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Disequilibrium in Balance of Payment
Disequilibrium in Balance of Payment Disequilibrium in Balance of Payment
Disequilibrium in Balance of Payment
 
What is Economy
What is EconomyWhat is Economy
What is Economy
 
Assignment economics (ECON 1550)
Assignment economics (ECON 1550)Assignment economics (ECON 1550)
Assignment economics (ECON 1550)
 
M egha panwar iii sem(ssei 98) - copy
M egha panwar iii sem(ssei 98) - copyM egha panwar iii sem(ssei 98) - copy
M egha panwar iii sem(ssei 98) - copy
 
India’s foreign trade
India’s foreign tradeIndia’s foreign trade
India’s foreign trade
 
Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)Balance of Payments Basics - 2015 (India)
Balance of Payments Basics - 2015 (India)
 
Balance Of Payment
Balance Of PaymentBalance Of Payment
Balance Of Payment
 
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvcbop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
bop.pdfjvjvhjvhjvjvjcgchchchchchchvchvchvchvc
 
BALANCE OF PAYMENTS
BALANCE OF PAYMENTSBALANCE OF PAYMENTS
BALANCE OF PAYMENTS
 
Balance of Payments
Balance of PaymentsBalance of Payments
Balance of Payments
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Balance of payment
Balance of paymentBalance of payment
Balance of payment
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 

Plus de MohdShahnawaz47

Plant or Facility Location by Shahnawaz
Plant or Facility Location by ShahnawazPlant or Facility Location by Shahnawaz
Plant or Facility Location by Shahnawaz
MohdShahnawaz47
 
INCO terms by Shahnawaz
INCO terms by ShahnawazINCO terms by Shahnawaz
INCO terms by Shahnawaz
MohdShahnawaz47
 
SEZ and EPZ By Shahnawaz
SEZ and EPZ By ShahnawazSEZ and EPZ By Shahnawaz
SEZ and EPZ By Shahnawaz
MohdShahnawaz47
 
International economic integration by Shahnawaz
International economic integration by ShahnawazInternational economic integration by Shahnawaz
International economic integration by Shahnawaz
MohdShahnawaz47
 
Domestic and international trade by Mohd Shahnawaz
Domestic and international trade by Mohd ShahnawazDomestic and international trade by Mohd Shahnawaz
Domestic and international trade by Mohd Shahnawaz
MohdShahnawaz47
 
Cargo Insurance by Mohd. Shahnawaz
Cargo Insurance by Mohd. ShahnawazCargo Insurance by Mohd. Shahnawaz
Cargo Insurance by Mohd. Shahnawaz
MohdShahnawaz47
 
Modes of Conflict Management by Shahnawaz
Modes of Conflict Management by ShahnawazModes of Conflict Management by Shahnawaz
Modes of Conflict Management by Shahnawaz
MohdShahnawaz47
 
Risk in international trade by Shahnawaz
Risk in international trade by ShahnawazRisk in international trade by Shahnawaz
Risk in international trade by Shahnawaz
MohdShahnawaz47
 
Conflict Management by shahnawaz
Conflict Management by shahnawazConflict Management by shahnawaz
Conflict Management by shahnawaz
MohdShahnawaz47
 
Leadership
Leadership Leadership
Leadership
MohdShahnawaz47
 
Group dynamics by By Mohd Shahnawaz
Group dynamics by By Mohd ShahnawazGroup dynamics by By Mohd Shahnawaz
Group dynamics by By Mohd Shahnawaz
MohdShahnawaz47
 

Plus de MohdShahnawaz47 (11)

Plant or Facility Location by Shahnawaz
Plant or Facility Location by ShahnawazPlant or Facility Location by Shahnawaz
Plant or Facility Location by Shahnawaz
 
INCO terms by Shahnawaz
INCO terms by ShahnawazINCO terms by Shahnawaz
INCO terms by Shahnawaz
 
SEZ and EPZ By Shahnawaz
SEZ and EPZ By ShahnawazSEZ and EPZ By Shahnawaz
SEZ and EPZ By Shahnawaz
 
International economic integration by Shahnawaz
International economic integration by ShahnawazInternational economic integration by Shahnawaz
International economic integration by Shahnawaz
 
Domestic and international trade by Mohd Shahnawaz
Domestic and international trade by Mohd ShahnawazDomestic and international trade by Mohd Shahnawaz
Domestic and international trade by Mohd Shahnawaz
 
Cargo Insurance by Mohd. Shahnawaz
Cargo Insurance by Mohd. ShahnawazCargo Insurance by Mohd. Shahnawaz
Cargo Insurance by Mohd. Shahnawaz
 
Modes of Conflict Management by Shahnawaz
Modes of Conflict Management by ShahnawazModes of Conflict Management by Shahnawaz
Modes of Conflict Management by Shahnawaz
 
Risk in international trade by Shahnawaz
Risk in international trade by ShahnawazRisk in international trade by Shahnawaz
Risk in international trade by Shahnawaz
 
Conflict Management by shahnawaz
Conflict Management by shahnawazConflict Management by shahnawaz
Conflict Management by shahnawaz
 
Leadership
Leadership Leadership
Leadership
 
Group dynamics by By Mohd Shahnawaz
Group dynamics by By Mohd ShahnawazGroup dynamics by By Mohd Shahnawaz
Group dynamics by By Mohd Shahnawaz
 

Dernier

Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
EduSkills OECD
 
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
สมใจ จันสุกสี
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
S. Raj Kumar
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
Solutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptxSolutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptx
spdendr
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
Colégio Santa Teresinha
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
History of Stoke Newington
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Denish Jangid
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
Nicholas Montgomery
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
mulvey2
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Excellence Foundation for South Sudan
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
RAHUL
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
HajraNaeem15
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Himanshu Rai
 
math operations ued in python and all used
math operations ued in python and all usedmath operations ued in python and all used
math operations ued in python and all used
ssuser13ffe4
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
adhitya5119
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
GeorgeMilliken2
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
Priyankaranawat4
 

Dernier (20)

Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
 
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
Solutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptxSolutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptx
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
 
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPLAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UP
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
 
math operations ued in python and all used
math operations ued in python and all usedmath operations ued in python and all used
math operations ued in python and all used
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
 

Balance of Trade and Balance Payment by shahnawaz

  • 1. BALANCE OF TRADE AND BALANCE OF PAYMENT Prepared By: Mohammad Shahnawaz (Assistant Professor) MBA (UGCNET-Management) MA (UGCNET- Education) M.A. (Economics) B.Ed.
  • 2. BALANCE OF TRADE MEANING: Records the volume of Goods and Services exported as well as imported by a country to other country.
  • 3.  Record of trade between two countries. Total Export-Total Import=Balance of Trade
  • 4. TYPES OF BALANCE OF TRADE (BoT) 1. Favorable BoT- Importing less Exporting more.  Also known as Positive balance of trade. 2. Unfavorable BoT- Importing more Exporting less.  Also known as Negative balance of trade.
  • 5. BALANCE OF PAYMENT (BoP)  It is the record of all economic transactions between the residents of the country and the rest of the world in particular period of time.  Record of nation’s financial transactions in Goods and Services with rest of the world in a single accounting year.
  • 6. Factors Causing BoP Disequilibrium 1.Political Factor Political uncertainty, economic instability, war, etc. 2.Social Factor Changing culture, taste, preferences and fashion, rate of urbanization, etc.
  • 7. 3.Economic Factor  Structural changes in the economy, inflation, development expenditure, etc. 4.Natural Factor  Natural calamities like flood, earthquake, tsunami, drought, etc.
  • 8. Measure to correct BoP Disequilibrium 1. Devaluation  Official reduction of the external values of a currency.  It helps to reduce imports and increase export by making imports costlier and exports cheaper.
  • 9. 2.Deflation  It indicates fall in the price of commodity.  It would make the products cheaper in foreign markets.
  • 10. 3.Export Promotion  This includes tax concession to exporters, subsidies, encouraging export production, etc. 4. Tariffs and Quotas  When tariffs are imposed, price of imports increase and this will reduce the demand for imported Goods.
  • 11.  Under quota system government may fix quota of commodity to be imported. 5. Non-tariff barriers  One country’s government completely prohibits trade with another country.