Balance of payments reflects trade balance from "summary" of EBOOK: Macroeconomics by Rudiger Dornbusch,Stanley Fischer,Richard Startz
The balance of payments is a crucial indicator of a country's economic health, as it provides a comprehensive overview of all international transactions undertaken by that country. One of the components of the balance of payments is the trade balance, which reflects the difference between a country's exports and imports of goods and services. When a country exports more than it imports, it has a surplus in the trade balance, and when it imports more than it exports, it has a deficit. The trade balance plays a significant role in determining the overall balance of payments. If a country consistently runs a trade surplus, this will have a positive impact on its overall balance of payments, as the excess ...
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