Question

A country exports $5000 and imports $4200. Calculate net exports. Is the country running a trade surplus or a trade deficit.

Answer 1

the net export is $800 and it is a trade surplus

Step-by-step explanation:

The computation of the net export is shown below:

As we know that

Net exports = Exports - Imports

= $5,000 - $4,200

= $800

As it can be seen that the net exports comes in positive so this represents that the country is running a trade surplus

Therefore the net export is $800 and it is a trade surplus

We simply applied the above formula so that the correct value could come

And, the same is to be considered