When a country exports more than it imports, it has a(n)
A) trade deficit.
B) favorable balance of trade.
C) unfavorable exchange rate.
D) unfavorable balance of trade.
E) unfavorable balance of payments.

Question

Quizplus · Accepted Answer

When a country exports more goods and services than it imports, it is said to have a favorable balance of trade. This means that the country is earning more revenue from its exports than it is spending on imports. This is a desirable situation because it can lead to increased economic growth and a stronger currency.

When a Country Exports More Than It Imports, It Has