Question

if the value of imports for the current year is $3 billion and the value of exports is $8 billion, what effect will this have on the country’s trade balance?

Answer 1

The effect that this will have on the country's trade balance is called the trade deficit. Trade deficit is defined as an economic condition wherein the country is importing more goods than exporting. This deficit is equal to the value of imported goods minus the value of exported goods and this puts this would result in the uncertainty of the country's currency. 

Answer 2

There will be a trade surplus

Step-by-step explanation:

The trade balance is affected by the exports and imports as follows:

1- trade surplus: this shows a positive balance of the trade. This means that the amount of exports is greater than the amount of imports

2- trade deficit: this shows a negative balance of trade. This means that the amount of exports is less than the amount of imports

In the given, we have:

amount of exports = $8 billion

amount of imports = $3 billion

Therefore, based on the above:

A trade surplus will occur

Hope this helps :)