ZIMSEC O Level Commerce Notes: Balance of Payments (B.O.P)
Balance of payments (B.O.P)
- This is the difference between Zimbabwe’s total earnings (receipts) and total expenditure.
- Exported goods and services less imported goods and services.
- It is calculated for a given year.
- When the total for exports exceeds the total for imports it is known as a favourable balance.
- When the total for exporters is exceeded by the total for imports it is known as an unfavourable balance.
- A favourable balance is also known as a surplus.
- An unfavourable balance is also known as a deficit.
- For example:
- Zimbabwe, in a given year, exported goods worth $5 billion and services worth $2 billion.
- In the same year it imports goods worth $7 billion and services worth $3 billion.
- The Balance of Payments would be calculated as follows:
- BOP=exports( goods+services exported) – imports (goods + services imported)
- = (5+2) – (7+2)
- =$2 billion dollars deficit.
To access more topics go to the Commerce Notes page.
Quick NetOne, Telecel, Africom, And Econet Airtime Recharge
If anything goes wrong, click here to enter your query.