ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a trade deficit
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a balanced budget
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a trade surplus
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a trade balance
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Detailed explanation-1: -Measuring the current account The trade balance is the difference between the value of exports of goods and services and the value of imports of goods and services. A trade deficit means that the country is importing more goods and services than it is exporting; a trade surplus means the opposite.
Detailed explanation-2: -What is an example of a trade deficit? A trade deficit occurs when a country imports more goods than it exports-the U.S. is an example of a country with a trade deficit.
Detailed explanation-3: -A country’s trade deficit or surplus is calculated by subtracting a country’s imports from its exports. The balance of trade is denominated in the local currency of the country for which it is being calculated.
Detailed explanation-4: -A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. It is the opposite of a trade deficit.