ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A healthy economy is one where both exports and imports are experiencing growth. This typically indicates economic strength and a sustainable trade surplus or deficit.

Detailed explanation-2: -Importing and Exporting are means of Foreign Trade. Foreign trade is carried out in goods and services – which includes imports, exports, and the balance of foreign trade – is presented separately for goods and for services.

Detailed explanation-3: -The balance of trade is the difference between a country’s exports and imports of goods, while the balance of payments is a record of all international economic transactions made by a country’s residents, including trade in goods and services, as well as financial capital and financial transfers.

Detailed explanation-4: -Terms of trade are defined as the ratio between the index of export prices and the index of import prices. If the export prices increase more than the import prices, a country has a positive terms of trade, as for the same amount of exports, it can purchase more imports.

Detailed explanation-5: -Definition: The annual compound percentage change in the value of exports between two periods. Range of values: The growth rate is a percentage. It can take a value between-100 per cent (if trade ceases) and +∞. A value of zero indicates that the value of trade has remained constant.