ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The country of Algonia produced and then shipped out $5 billion in goods to other nations. It brought in $4 billion in goods? What does this country have?
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A balanced budget
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A trade deficit
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A trade balance
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A trade surplus
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Explanation:
Detailed explanation-1: -What Is an Export? Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade.
Detailed explanation-2: -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-3: -Balance of Trade: Favorable vs. 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.
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