BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The balance of trade is the difference between a country’s exports and imports of goods. A positive balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports.

Detailed explanation-2: -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-3: -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.

Detailed explanation-4: -Balance of Trade : It refers to the total value of country’s export commodities and total value of imports commodities. Thus, balance of trade includes only visible trade, i.e., movement of goods (exports and imports of goods).

Detailed explanation-5: -Balance of trade is defined as a nation’s net exports, or its exports minus imports. When exports exceed imports, the nation has a trade surplus, and when imports exceed exports, the nation has a trade deficit. Factor endowments, such as labor, affect the balance of trade by what is produced and by whom.