ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance of payments
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Foreign exchange
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Balance of Trade
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Disequilibrium
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Detailed explanation-1: -Balance of trade (BOT) is the difference between the value of a country’s imports and exports for a given period and is the largest component of a country’s balance of payments (BOP).
Detailed explanation-2: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of its imports for a given period.
Detailed explanation-3: -If the value of exports exceeds the value of imports, it is said that there is a trade surplus; if imports are greater than exports, the country has a trade deficit.
Detailed explanation-4: -Exporting refers to the selling of goods and services from the home country to a foreign nation. Whereas, importing refers to the purchase of foreign products and bringing them into one’s home country.
Detailed explanation-5: -Balance of Trade is the difference in value between a country’s imports and exports.