ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Free trade agreement
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Trade surplus
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Trade deficit
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Trade free economic system
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Detailed explanation-1: -If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative.
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: -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-4: -A trade deficit occurs when a nation imports more than it exports.
Detailed explanation-5: -If a country has a trade deficit, it imports (or buys) more goods and services from other countries than it exports (or sells) internationally. If a country exports more goods and services than it imports, the country has a balance of trade surplus.