ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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BOP
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BOT
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BT
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CVC
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Detailed explanation-1: -Based on the definition of BOT, the total value of exports – the total value of imports = Balance of trade. It is considered as the largest component of the country’s BOP.
Detailed explanation-2: -The Balance of trade (BOT) is the difference between a country’s imports and its exports for a given time 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. Type of transactions included. Transactions related to goods are included in BoT.
Detailed explanation-4: -If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance.
Detailed explanation-5: -Current account. Financial account. Capital account. Decision-making. Developing trade policies. Establishing fiscal objectives. Implementing growth strategies. Analyzing deficits.