The difference between merchandise exports and imports is known as the ____.

Question

Quizplus · Accepted Answer

The difference between merchandise exports and imports is known as the merchandise trade balance, which represents the net exports of physical goods. Option A (transaction exposure) refers to the risk of loss due to changes in exchange rates in international transactions. Option B (difference in purchasing power) refers to the difference in the value of a currency in different countries, which can impact trade but is not directly related to exports and imports. Option D (import/export reserve) is not a commonly used term in international trade.

The Difference Between Merchandise Exports and Imports Is Known as the ____