Differentiate Between Balance of Trade and Balance of Payments, and Explain

question 149

Essay

Differentiate between balance of trade and balance of payments, and explain when a country experiences a deficit or a surplus trade and payment balances.

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Definitions:

Implied Warranty

A legal assumption that ensures goods are fit for their intended purpose, even if not explicitly stated.

Sales Contract

A formal agreement between a buyer and a seller detailing the terms of a transaction, including the sale of goods, services, or property.

Horizontal Privity

A legal relationship that exists between entities that share a mutual interest or right, particularly in property law.

Strict Liability

A legal doctrine that holds someone responsible for damages or harm without having to prove negligence or fault.