BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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balance of trade
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foreign debt
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opportunity cost
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comparative advantage
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Detailed explanation-1: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of a country’s imports for a given period. Balance of trade is the largest component of a country’s balance of payments (BOP).
Detailed explanation-2: -Trade in goods and services between U.S. residents and residents of other countries each month. U.S. sales are exports and U.S. purchases are imports. The difference between the exports and imports is the trade balance.
Detailed explanation-3: -Basically, if the product is manufactured domestically and traded in a foreign country, it is known as an export. In International trade, exports are one of the components. The other component is imported which means the goods and services purchased by a country’s citizens that are manufactured in a foreign country.
Detailed explanation-4: -The correct answer is the Balance of Trade. The difference between a country’s imports of goods and services and its exports is called Balance of Trade.
Detailed explanation-5: -A BOP statement of a country indicates whether the country has a surplus or a deficit of funds, i.e. when a country’s export is more than its import, its BOP is said to be in surplus. On the other hand, the BOP deficit indicates that its imports are more than its exports.