ECONOMICS
BALANCE OF TRADE
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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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Balance of Trade
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Imbalance of Trade
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None of the above
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Detailed explanation-1: -The balance of trade is the difference between a country’s exports and imports of goods. A positive balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports.
Detailed explanation-2: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.
Detailed explanation-3: -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-4: -The balance of trade is the official term for net exports that makes up the balance of payments. The balance of trade can be a “favorable” surplus (exports exceed imports) or an “unfavorable” deficit (imports exceed exports).