IBO-03 INDIA'S FOREIGN TRADE ASSIGNMENT FOR 2019

Write a short note on .
A. Balance of payments
B. Role of international organisations in world wide
C. Indo-us trade prospect
D.Indo-saarc Tarde

Ans.  CONCEPTS OF BALANCE OF PAYMENTS

Balance of payments refers to all economic transactions between domestic and foreign residents over a stipulated period, generally one year The analysis of balance of payments is immensely useful for the policy makers and business communities Moreover, it is an important instrument for maintaining external economic stability. A close understanding of dependence of international business upon balance of paymentsis necessary for successful strategy of international business.

international trade includes not only import and export of goods but also services. The exchanges of sen ices between countries is called invisible exports and imports such as air and ocean shipping. financial and other services like banking, insurance, travel, investment income, etc. Export and import of goods are treated as visible trade as they are physically recorded at the customs barriers of the country. Receipts and payments for services are items of invisible trade. 

The balance of payments is broader than the balance of trade for it includes not only visible items but also invisible items. Hence, the balance of payments presents a better picture ofa country's economic and financial transactions with the rest of world than the balance of trade. Balance of payments is a comprehensive and systematic record of all economic transactions between the residents of a country and the rest of the world. It presents an account of 'all receipts and payments on account of goods exported, services rendered and capital received by residents/Government of a country (intlows from abroad) and goods imported, services received and capital transferred by the resident's Government of a country (outflows abroad).