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
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Balance of Payments
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Imbalance of Trade
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None of the above
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Detailed explanation-1: -Balance of trade (BOT) is the difference between the value of a country’s exports and the value of a country’s imports for a given period. Balance of trade is the largest component of a country’s balance of payments (BOP).
Detailed explanation-2: -A BOP statement of a country indicates whether the country has a surplus or a deficit of funds, i.e. when a country’s export is more than its import, its BOP is said to be in surplus. On the other hand, the BOP deficit indicates that its imports are more than its exports.
Detailed explanation-3: -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.
Detailed explanation-4: -Balance of Trade is the difference in value between a country’s imports and exports.
Detailed explanation-5: -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.