There is no country in the world that has achieved self-sufficiency. The only way to acquire things that a country does not produce is to trade with other countries. Interactions between countries involve trade of goods and services as well as investments that generate income. A country receives payment for the services it renders and goods that it sells to other countries. It makes payment to countries that offer goods and gives services. Balance of payment, as defined by Dunn and Mutti (2004, p. 43) refers to “records of payment and receipts of the residents of a country in their transactions with residents of other countries”.The payment made and that received should always balance. Failure to balance implies that a country is getting a raw deal from its partner. Japan has being selling vehicles and other machineries to the United States of America. The United States sells dollar assets to Japan. Balance of trade envisions that the value Japan makes from selling vehicles to America must be commensurate to the value that America’s bank institutions get by selling dollar assets to Japan. However, the balance of payment between countries is not achievable all the times. If America gets more value that it gives to Japan, it experiences surplus while Japan experiences deficit. The imbalance in payment may occur because of several factors. The first is an excess or limited trade in goods and services. Secondly, a country may accrue lots of profit from its investment in another country. Thirdly, foreign aid may upset the balance of payment, as it is the case between America and most developing nations. Mastrianna (2010, p. 65) notes that the “flow of gold and money between central banks and treasuries can easily upset the balance of payment”. Economists argue that people can only understand balance of payment in reference to particular transactions (Dunn & Mutti 2004). In other words, one can only measure the balance of payment when he or she considers services versus services, not goods versus goods. Economists use current account deficit to determine whether there is a deficit or surplus in balance of payment. According to Mastrianna (2010, p. 66), a country is experiencing a deficit “when its government, businesses, and individuals imports more goods, services and capital than it exports”. To measure the deficit, several yardsticks are required. The first one is trade. United States for instance sells surplus natural gas to Europe. The second yardstick is income accrued from international contracts, for instance construction of roads by federal corporations. The third is investment. A country can invest in another country and this will count in determining deficit or surplus. In the past, people assumed that a current account deficit was a sign that the government was in financial crisis. Economists have however established that this is not always the case (Soukiazias & Cerqueira 2012). The government can actually precipitate a deficit to spur growth. Trade deficit is the major factor that precipitates a deficit (Barschel 2007). If a country buys more than it sells, chances of causing a deficit are high. Additionally, countries that pay foreigners more money than they do accrue from the foreigner’s host countries ri