ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Value of goods a country imports more than it’s export
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Volume of goods a country imports more than it’s export
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Tax on a import goods more than the tax on export goods
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Value of goods a country export more than it’s import
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Detailed explanation-1: -A trade deficit can be the result of a country having a comparative disadvantage in the production of certain goods, or it can be the result of a country’s currency being relatively overvalued, making its imports cheaper and its exports more expensive.
Detailed explanation-2: -A trade deficit occurs when a nation imports more than it exports.
Detailed explanation-3: -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-4: -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-5: -A trade deficit occurs when a country imports more goods than they export. A trade surplus occurs when a country exports more goods than they import. Net exports are calculated by subtracting exports and imports.