Balanced trade is:
A)a situation in which the value of a country's exports equals the value of its production
B)a situation in which the value of a country's exports equals the value of its imports
C)a situation in which the value of a country's imports equals the value of its consumption
D)none of the above

Question

Quizplus · Accepted Answer

Balanced trade refers to a situation in which the value of a country's exports is equal to the value of its imports. This indicates that a country is not relying too heavily on imports or exports, and is instead engaging in fair and sustainable trade practices with other nations. A situation in which the value of a country's exports equals the value of its production (choice A) would likely indicate that the country is not importing much, which could limit its access to important goods and services. Similarly, a situation in which the value of a country's imports equals the value of its consumption (choice C) would suggest that the country is not exporting much, which could limit its ability to earn foreign currency and invest in its own economy.

Balanced Trade Is