Question

Hypothesize why britain would want to correct the balance of trade with china.

A. Britain was losing money because they were importing more than exporting
B. Britain was losing money because they were exporting more than importing
C. Britain wanted to close all of their ports and needed to stop all trade

Answer 1

I'm going to assume that you're talking about the days of the British empire, in advance of the Opium Wars.

A. Britain was losing money because they were importing more than exporting.

In Britain, there was a strong market and high demand for imports from China like silk and porcelain. But the British did not have enough items of demand or silver to trade with China. So the British, wanting imperial dominance, began a process of importing opium into China -- a drug which became a high demand product. The Chinese government under the Qing dynasty strongly opposed the opium trade, and the Opium Wars were the result.

On a present-day note, in January 2018, Britain's prime minister Theresa May announced intentions to increase trade with China. As of the beginning of this year, just 3% of Britain's exports were going to China and just 7% of Britain's imports coming from China. Don't expect any wars over this. Prime Minister May and a number of Britain's business leaders went to China to work on negotiating trade deals.

Answer 2

The correct answer here would be A.

When you import products into your country that means you are buying them and when exporting that means you are selling them to other countries. Britain is losing money as they are buying more than they are selling. Britain's main exports to Chine are cars, tourist services and petroleum products while China's exports are electronics, manufactured goods, clothing and telecommunication equipment.