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2 years ago

Why do economists pay attention to the balance of trade?

1 answer:

3 0

Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

<h3>Why is a balance of trade vital to the economy?</h3>

The Balance of trade plays a significant role in the calculation of the Gross Domestic Product of a country. As a part of GDP calculations, exports are brought and imports are subtracted from the total.

The more the change surplus, the more the GDP of a country.

Therefore, Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

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