BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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import, export
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export, import
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Detailed explanation-1: -It is an unfavourable situation when the country’s import is more than its export of goods and services. It means that a country is spending money more than it earns. In this case, it has to borrow to pay for its imports. Thus, it creates a problem for the economy.
Detailed explanation-2: -A balance of payments deficit means the nation imports more commodities, capital and services than it exports. It must take from other nations to pay for their imports.
Detailed explanation-3: -If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative.
Detailed explanation-4: -A balance of payments deficit means the country imports more goods, services, and capital than it exports. It must borrow from other countries to pay for its imports.
Detailed explanation-5: -1 Answer. B. When receipts of foreign exchange are more than payments of foreign exchange, BOP is in Surplus.