A country’s total exports are $300 billion and total imports are $350 billion. W

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Question: A country’s total exports are $300 billion and total imports are $350 billion. What is the trade balance?

Options:

Correct Answer: -$50 billion

Solution:

Trade Balance = Exports - Imports = $300 billion - $350 billion = -$50 billion.

A country’s total exports are $300 billion and total imports are $350 billion. What is the trade balance?

A country’s total exports are $300 billion and total imports are $350 billion. What is the trade balance?

Step 1: Identify the total exports of the country, which is $300 billion.
Step 2: Identify the total imports of the country, which is $350 billion.
Step 3: Use the trade balance formula: Trade Balance = Exports - Imports.
Step 4: Substitute the values into the formula: Trade Balance = $300 billion - $350 billion.
Step 5: Calculate the result: $300 billion - $350 billion = -$50 billion.
Step 6: Interpret the result: A negative trade balance of -$50 billion means the country imports more than it exports.

Trade Balance – The trade balance is the difference between a country's total exports and total imports, indicating whether a country has a trade surplus (exports > imports) or a trade deficit (exports < imports).