If a country has a trade deficit of $50 billion and its exports are $200 billion

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Question: If a country has a trade deficit of $50 billion and its exports are $200 billion, what are its imports? (2021)

Options:

Correct Answer: $250 billion

Exam Year: 2021

Solution:

Imports = Exports + Trade Deficit = $200 billion + $50 billion = $250 billion.

If a country has a trade deficit of $50 billion and its exports are $200 billion, what are its imports? (2021)

If a country has a trade deficit of $50 billion and its exports are $200 billion, what are its imports? (2021)

Step 1: Understand what a trade deficit is. A trade deficit means that a country is importing more than it is exporting.
Step 2: Identify the values given in the question. The trade deficit is $50 billion and exports are $200 billion.
Step 3: Use the formula to find imports. The formula is: Imports = Exports + Trade Deficit.
Step 4: Plug in the values into the formula. So, Imports = $200 billion + $50 billion.
Step 5: Calculate the total. $200 billion + $50 billion equals $250 billion.
Step 6: Conclude that the imports are $250 billion.

Trade Balance – The relationship between a country's exports and imports, where a trade deficit indicates that imports exceed exports.
Basic Arithmetic – The ability to perform simple addition to calculate total imports based on exports and trade deficit.