Multiple Choice
Which of the following best describes how exporting and importing affect relationships between businesses and among nations?
9. International Trade
Exporting and Importing
Multiple Choice
Based on the table, the nation's trade balance is equal to which of the following?
A
The value of imports minus the value of exports
B
The sum of exports and imports
C
The difference between government spending and tax revenue
D
The value of exports minus the value of imports
Verified step by step guidance1
Understand the concept of the trade balance: It measures the difference between the value of a country's exports and imports over a certain period.
Recall the formula for the trade balance: \(\text{Trade Balance} = \text{Exports} - \text{Imports}\).
Identify the values of exports and imports from the given table or data.
Subtract the value of imports from the value of exports using the formula above.
Interpret the result: A positive value indicates a trade surplus, while a negative value indicates a trade deficit.
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