How does a country's current account balance relate to its trade balance and foreign investment activities?

A country's current account balance shows the difference between its total exports and imports of goods and services, which is called the trade balance. If a country exports more than it imports, it has a trade surplus, while if it imports more, it has a trade deficit. This balance is important because it also includes other factors like foreign investments, which can affect the overall current account. For example, if a country has a trade deficit but receives a lot of foreign investment, this can help balance out its current account. Thus, the current account gives a fuller picture of a country's economic situation by considering both trade and investment activities.