ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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imports > exports
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exports > imports
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trade balance = net income balance
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goods exports > services exports
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Detailed explanation-1: -A favorable balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports. This means that the country is earning more from its exports than it is spending on its imports, and it is generally seen as a sign of economic strength.
Detailed explanation-2: -The trade balance is the net sum of a country’s exports and imports of goods without taking into account all financial transfers, investments and other financial components. A country’s trade balance is positive (meaning that it registers a surplus) if the value of exports exceeds the value of imports.
Detailed explanation-3: -The correct answer is Balance of trade . Key Points. The difference between the value of a country’s exports and the value of its imports for a certain period is known as the balance of trade (BOT).
Detailed explanation-4: -Countries export and import because it is beneficial to producers and consumers. Exporting and importing increases the total level of surplus, and hence why free trade should not be disrupted.