Question

Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of all the products its imports?

A) Balance of foreign competition.
B) Balance of payments.
C) Balance of trade.
D) Balance of domestic competition.
E) Balance of supply and demand.

Answer 1

The correct term is the balance of trade, representing the difference between a country's exports and imports, with surpluses or deficits reflecting the economic performance.

Step-by-step explanation:

The name for the economic value of all of the products that a country exports minus the economic value of all the products it imports is called the balance of trade, or trade balance.

The balance of trade is indicated by the formula: Exports (X) - Imports (M). When a country's exports are greater than its imports, it results in a trade surplus. Conversely, when imports exceeds exports, there is a trade deficit. A balanced trade scenario occurs when exports and imports are equal. Large trade surpluses or deficits can have significant economic impacts, potentially affecting the currency value, employment rates, and overall economic growth.

Answer 2

Option (C) is correct.

Step-by-step explanation:

Balance of trade refers to the difference between a nation's total exports value and total imports value. It is a component of balance of payment. The balance of trade is a narrower concept than the balance of payment.

Balance of trade is also known as trade balance and it is a crucial component of current account. If a nation has more exports than imports then this nation is experiencing trade surplus and if a nation has more imports than exports then this nation is experiencing a trade deficit.