The trade balance is:

Question

Quizplus · Accepted Answer

The trade balance refers specifically to the balance of trade in goods and services, which is a component of the current account. It is calculated as the difference between a country's exports and imports of goods and services. Option A refers to net foreign investment, which is not the same thing as the trade balance. Option B refers to the net international investment position, which includes both the current account and the capital account, and is not solely focused on the trade balance. Option C is the most accurate definition of the trade balance. Therefore, the best choice is C.

The Trade Balance Is