Which of the following best defines balance of trade?
A) Purchasing products in other countries and bringing them into one's own country
B) The total value of a nation's exports minus the total value of its imports over some period of time
C) The total flow of money into the country minus the total flow of money out of the country over some period of time
D) The ability to specialise in the production of a specific product and trade it for other needed products
E) The ability to produce a certain product more efficiently than any other nation

Question

Quizplus · Accepted Answer

Balance of trade refers to the difference between the value of a nation's exports and the value of its imports over a specified period of time. If a country exports more than it imports, it has a trade surplus, while if it imports more than it exports, it has a trade deficit.

Which of the Following Best Defines Balance of Trade