If Canada exported $8 billion and imported $12 billion then its balance of trade would be a surplus of $4 billion dollars.

Question

Quizplus · Accepted Answer

The statement is incorrect. Balance of trade is calculated by subtracting the value of imports from the value of exports. In this case, the value of imports ($12 billion) is higher than the value of exports ($8 billion), resulting in a trade deficit, not surplus. The correct balance of trade would be a deficit of $4 billion, not a surplus.

If Canada Exported $8 Billion and Imported $12 Billion Then