Balance of Payment VS Balance of Trade

BOP	Point of difference	BOT
It is a broad term.	Nature	It is a narrow term.
It includes all transactions related to visible, invisible and capital transfers	Items included	It includes only visible items.
Always balanced	Balancing	It can be favorable or unfavorable.
BOP = Current Account + Capital Account  + or - Balancing item ( Errors and omissions)	Formation	BOT = Net Earning on Export - Net payment for imports.
a) Conditions of foreign lenders. b) Economic policy of Govt. c) all the factors of BOT	Influencing factors	a) cost of production b) availability of raw materials c) Exchange rate d) Prices of goods manufactured at home