Question

The sum total of a​ nation's net​ trade, i.e., its exports minus imports in a given​ year, defines its​ _________.

A) Balance of Payments
B) Trade Surplus
C) Trade Deficit
D) Trade Balance

Answer 1

The sum total of a nation's net trade is defined as its trade balance, which can result in either a trade surplus or a trade deficit.

Step-by-step explanation:

The sum total of a nation's net trade, which is exports minus imports in a given year, defines its trade balance. When a nation's exports exceed its imports, it results in a trade surplus. Conversely, when imports exceed exports, the nation faces a trade deficit. If the value of exports and imports is equal, the trade balance is considered to be in equilibrium. However, when trade is out of balance, resulting in either large trade surpluses or deficits, it can have significant implications for a nation's economy.