ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance of Trade shows a Surplus of Rs. 1200 crores, and the Imports is Rs. 500 crores. What will be the value of Exports?
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Rs. 700 crores
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Rs. 1700 crores
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Rs. (-) 700 crores
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None of the above
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Explanation:
Detailed explanation-1: -Imports = Exports-Balance of Trade = 500-(-600) = 1, 100. Q.
Detailed explanation-2: -How to Calculate It. A country’s trade balance equals the value of its exports minus its imports. Exports are goods or services made domestically and sold to a foreigner.
Detailed explanation-3: -A trade surplus occurs when a country exports more than it imports. A country’s trade balance can be calculated from a simple formula: Total Value of Exports-Total Value of Imports.
Detailed explanation-4: -So, Imports = Exports-Balance of trade = 300−(−)400=Rs. 700 crores.
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