Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of all the products its imports?

A) Balance of foreign competition.

B) Balance of payments.

C) Balance of trade.

D) Balance of domestic competition.

E) Balance of supply and demand.

Question

Business

Lyons

21 August, 07:21

Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of all the products its imports?

A) Balance of foreign competition.

B) Balance of payments.

C) Balance of trade.

D) Balance of domestic competition.

E) Balance of supply and demand.

+1

Answers (1)

Know the Answer?

Steve Cherry · Answer 1

Option (C) is correct.

Explanation:

Balance of trade refers to the difference between a nation's total exports value and total imports value. It is a component of balance of payment. The balance of trade is a narrower concept than the balance of payment.

Balance of trade is also known as trade balance and it is a crucial component of current account. If a nation has more exports than imports then this nation is experiencing trade surplus and if a nation has more imports than exports then this nation is experiencing a trade deficit.