ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exports and imports are the same
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Exports are higher than imports
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Exports are lower than imports
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None of the above
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Detailed explanation-1: -A trade deficit occurs when a country imports more than it exports. In other words, when a country buys more than it sells, it has a trade deficit. How is the World Economic Forum ensuring sustainable global markets?
Detailed explanation-2: -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). The balance can be calculated on different categories of transactions: goods (a.k.a., “merchandise”), services, goods and services.
Detailed explanation-3: -Effect on Gross Domestic Product When exports are less than imports, the net exports figure is negative. This indicates that the nation has a trade deficit. A trade surplus contributes to economic growth in a country.
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.