If a country imports goods worth $500 million and exports goods worth $300 milli

If a country imports goods worth $500 million and exports goods worth $300 million, what is the trade deficit?

If a country imports goods worth $500 million and exports goods worth $300 million, what is the trade deficit?

Step 1: Identify the total value of goods imported by the country, which is $500 million.
Step 2: Identify the total value of goods exported by the country, which is $300 million.
Step 3: Use the formula for trade deficit, which is Trade Deficit = Imports - Exports.
Step 4: Substitute the values into the formula: Trade Deficit = $500 million - $300 million.
Step 5: Calculate the result: $500 million - $300 million = $200 million.
Step 6: Conclude that the trade deficit is $200 million.

Trade Deficit – The trade deficit is the amount by which a country's imports exceed its exports.