HISTORY
ABSOLUTISM AND REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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positive trade
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commercial balance of trade
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favorable balance of trade
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negative trade
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Detailed explanation-1: -A positive balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports.
Detailed explanation-2: -A closed economy typically refers to a country that does not trade or engage in other financial exchanges with any other country. That means no imports come into the country and no exports leave it.
Detailed explanation-3: -So export is an income for the country whereas import is an expense for the country. Therefore, when export is higher than imports then the net earnings from the trade of a country is positive.
Detailed explanation-4: -Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in. There are downsides to focusing only on a country’s comparative advantages, which can exploit the country’s labor and natural resources.