Question

Balance of trade summarizes

A. the cost of trade.

B. the flow of capital.

C. the flow of goods and services.

D. the balance of government budgets.

Answer 1

C) the flow of goods and services.

Step-by-step explanation:

In macroeconomics, the trade balance = exports - imports.

Exports are the goods and services produced domestically in your country that are sold to buyers in other foreign countries.

Imports are the goods and services produced in other foreign countries that are sold to local buyers in your country.

Exports and imports flow between countries, and the trade balance basically shows us if the country imported more foreign goods or exported more domestic good to international markets.

The trade balance is part of the current account of a country.

Answer 2

C. The flow of goods and services.

Step-by-step explanation:

Balance of trade: In Economics, the balance of trade accounts for the inflow and outflow of the goods and services in in a country for a given period, it is also called the balance of payment.