Balance of trade refers to
A)the sum of all a nation's imports and exports.
B)the difference between the monetary value of a nation's exports and imports.
C)the comparison of total exports from one country to another.
D)the difference between projected sales and actual sales for a nation's exports.
E)the state of equilibrium when two neighboring nations participate in countertrade.

Question

Quizplus · Accepted Answer

Balance of trade refers to the difference between the monetary value of a nation's exports and imports. It is calculated by subtracting the total value of imports from the total value of exports. A positive balance of trade, also known as a trade surplus, occurs when a country's exports exceed its imports. A negative balance of trade, also known as a trade deficit, occurs when a country's imports exceed its exports.

Balance of Trade Refers to