What is the difference between Balance of Trade and current account balance?

cbse-class-12

#1

Balance of Trade refers to the balance occurring on account of export and import of visible items.
Current account balance includes the following:
(i) Export and import of goods.
(ii) Export and import of services.
(iii) Unilateral transfers from one country to the other.
Thus, Balance of Trade is only a component of current account balance.