Differentiate between balance of trade and current account balance.
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Differentiate between balance of trade and current account balance.
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The term "balance of trade" refers to the difference between the export and import of visible goods (goods only). It's also known as the differential between the value of items exported and imported.

 The following items are included in the current account balance:

 (i) Goods and services export and import.

(ii) Unilateral transfers from one country to another.

 (iii) It is the net value of the visible (goods) and invisible (services) trade / items' balances, and it records transactions for both. The concept of current account balance has broadened.

As a result, the current account balance is only considered as a part of the balance of trade.
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