Question

A favorable balance of trades exists when a country

A. has more debt liabilities than assets

B. spends more than it saves

C. saves more than it spends

D. exports more than it imports

Answer 1

D. exports more than it imports

Step-by-step explanation:

A favorable balance of payment is a term used in international trade to describe a situation where a country's exports exceed imports. A country will experience a positive balance of payment if its a net exporter. A favorable balance of payments is when there is a surplus in a country's balance of trade.

Exports are goods and services manufactured within the borders of a country and sold to foreigners. Imports are products bought from other countries. In calculating the balance of payment, net income from international assets is also considered.