ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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trade deficit
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net export
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both of these are acceptable
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None of the above
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Detailed explanation-1: -A trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).
Detailed explanation-2: -If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative. However, the words ‘positive’ and ‘negative’ have only a numerical meaning and do not necessarily reflect whether the economy of a country or area is performing well or not.
Detailed explanation-3: -Correct answer is favourable balance of trade. When exports exceed import by large margins, it is called favourable balance of trade.
Detailed explanation-4: -A country that imports more goods and services than it exports in terms of value has a trade deficit or a negative trade balance. Conversely, a country that exports more goods and services than it imports has a trade surplus or a positive trade balance.
Detailed explanation-5: -1 min read . Updated: 16 Jan 2023, 04:00 PM IST Livemint. Despite global headwinds, India’s exports have held its head high, Commerce Secretary Sunil Barthwal has said.