Balance of payment is defined as the difference between the total value of payments to the rest of the world and total value of receipts from the rest of the world over a period of time.
Balance of payments includes all the transactions take place between a nation with the rest of world.
Balance of trade is a sub-part of balance of payments which includes all the transactions of goods and services between the nations.
A country has either a negative balance of payment, balanced balance of payment or positive balance of payment.
