State with reason whether you agree or disagree : There is no difference between the concepts of Balance of Trade and Balance of Payment.

Answer: I disagree with the statement.

Reasons: Balance of Trade (BOT) and Balance of Payments (BOP) are different concepts:

1. Meaning: BOT is the difference between the value of a country's visible exports and visible imports of goods. BOP is a systematic record of all economic transactions of a country with the rest of the world during a year.
2. Scope: BOT is narrow; it covers only visible items (goods). BOP is wide; it covers visible items, invisible items (services, transfers, income) and capital transactions.
3. Part and whole: BOT is a part of the current account of BOP.
4. Balance: BOT may be favourable, unfavourable or balanced. BOP always balances in the accounting sense, since deficits are met by capital flows or reserves.
5. Indicator: BOP gives a complete picture of a country's external economic position; BOT does not.