A nation that imports more goods and services than it exports is necessarily realizing an
international balance of payments deﬁcit.

Question

Quizplus · Accepted Answer

A nation can import more goods and services than it exports and still not have a balance of payments deficit because the balance of payments also includes other financial flows, such as investments, loans, and aid, which can offset the trade deficit.

A Nation That Imports More Goods and Services Than It