Question

Country X exported products totaling $92 billion last year. During the same year, Country X imported products valued at $46 billion. Country X has a(n) _____.

a. Trade surplus
b. Trade deficit
c. Balanced trade
d. None of the above

Answer 1

Country X has a trade surplus, because its exports exceed its imports.

Step-by-step explanation:

Country X exported products totaling $92 billion last year and imported products valued at $46 billion. The trade balance of a country is determined by subtracting the dollar value of imports from the dollar value of exports, which can be represented as (X – M). Therefore, since Country X's exports are greater than its imports, Country X has a trade surplus.