When export and import of tangible goods are equal what does it mean in balance of payment,current account is balance,capital account is balance,financial account is balance
When the export and import of tangible goods are equal, it means that the current account of the balance of payments is in balance. This means that the value of goods and services exported is equal to the value of goods and services imported.
In addition, if the current account is in balance, it also means that the capital account is in balance. The capital account consists of transactions related to capital transfers and the acquisition and disposal of non-financial assets. When the capital account is in balance, it means that the inflow of capital into the country is equal to the outflow of capital.
Similarly, if the current and capital accounts are in balance, then the financial account is also in balance. The financial account records transactions related to financial assets and liabilities, such as foreign direct investments, portfolio investments, and other financial flows. When the financial account is in balance, it means that the inflow of financial assets into the country is equal to the outflow of financial assets.
Overall, when the export and import of tangible goods are equal, and the current, capital, and financial accounts are all in balance, it indicates that the country's balance of payments is in equilibrium.