ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the balance of trade
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the balance of payments
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trade surplus
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payment surplus
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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: -Balance of trade (BoT) is the difference that is obtained from the export and import of goods. Balance of payments (BoP) is the difference between the inflow and outflow of foreign exchange. Transactions related to goods are included in BoT.
Detailed explanation-4: -The terms of trade, in this paper, is the relative price of imports to exports, and the trade balance is the ratio of net exports to output.