Question

The United States imports 500 billion dollars of goods from China. The US exports 150 billion dollars of goods and services to China. What is the United States' balance of trade with China?

Answer 1

The United States' balance of trade with China is a trade deficit of -$350 billion, as it imports $500 billion and exports $150 billion worth of goods and services to China.

Step-by-step explanation:

The United States' balance of trade with China can be calculated by subtracting the total value of imports from the total value of exports. In this scenario, the United States imports $500 billion worth of goods from China and exports $150 billion worth of goods and services to China. Therefore, the balance of trade is the exports minus imports.

To calculate the balance of trade: $150 billion (exports) - $500 billion (imports) = -$350 billion. This figure represents a trade deficit, meaning that the United States imports more goods from China than it exports to China. The trade balance is an important indicator of a country's economic dealings with another country, and in this case, it clearly shows that the U.S. has a trade deficit with China.