Balance of Trade is the difference that is obtained from the export and import of goods. Balance of Payments is the difference between inflow and outflow of foreign exchange. Net effect of Balance of Payment is always zero. Net effect of Balance of Trade can be zero, positive or negative. Balance of Payment or BoP is a financial statement that keeps track of all the economic transactions by the nation with the rest of the world. Balance of Trade or BoT is a financial statement that captures the nation’s import and export of commodities with the rest of the world.