What does a nation's merchandise trade balance reflect?

Question

Quizplus · Accepted Answer

A nation's merchandise trade balance reflects trade in tangible products, i.e., physical goods that can be traded and exchanged. It compares the exports and imports of goods, which helps determine whether a country has a surplus or deficit in its trade balance. This does not take into account trade in intangible products, such as services, intellectual property, or financial transactions.

What Does a Nation's Merchandise Trade Balance Reflect