Question

the key difference is the direction of the trade

1. how does balance of trade differ from balance of payments?

Explanation:

The balance of trade focuses only on the value of a country's exports and imports of goods. The balance of payments includes not only the balance of trade but also other international transactions such as services, capital flows, and unilateral transfers. So the scope is the main difference.

Answer:

The balance of trade is concerned with the value of goods exported and imported, while the balance of payments encompasses a broader range of international transactions including services, capital - account items, and unilateral transfers.