ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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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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Trade Surplus
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Trade Deficit
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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: -A country has a trade deficit when the value of its imports exceeds the value of its exports. The impacts of trade deficits are frequently over-simplified. Trade deficits can be damaging but they also bring welcome economic benefits.
Detailed explanation-3: -A country that imports more goods and services than it exports in terms of value has a trade deficit or a negative trade balance.
Detailed explanation-4: -A trade deficit occurs when a nation imports more than it exports.
Detailed explanation-5: -If the value of exports exceeds the value of imports, it is said that there is a trade surplus; if imports are greater than exports, the country has a trade deficit.