Question

Wichasha, an african country, exports barley and cotton worth $100 million to illema, a european country, and it imports sugarcane worth $25 million from illema. As such, the total value of wichasha's exports is higher than the total value of its imports. This difference between the value of wichasha's exports and imports is known as _____.

Answer 1

Answer: Balance of Trade

Explanation:

Balance of trade is the difference between the value of exports from a country and the value of imports into the country. When the value of exports is greater than imports, the balance of trade is positive and the country has a trade surplus. While, when the value of exports is less than the value of imports, the balance of trade is negative and the country has a trade deficit.

In this case,  Wichasha's exports is higher than the total value of its imports so, it has a trade surplus or positive balance of trade.