Question

In a global economy, products and services are exchanged around the world. Ford Motor Company has production plants in Mexico and purchases component parts from various suppliers around the world which are imported to Mexico to be used in production. Once the automobiles are completed, the finished cars are exported primarily to the United States and Canada. The difference between the value of exports of a country and the value of its imports over a given period is called _______.

Answer 1

The difference between the value of exports and imports of a country is called the trade balance.

Step-by-step explanation:

The difference between the value of exports of a country and the value of its imports over a given period is called the trade balance. It is calculated by subtracting the value of imports from the value of exports. If a country's exports are larger than its imports, it has a trade surplus. On the other hand, if a country's imports are larger than its exports, it has a trade deficit.