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Usimov [2.4K]
3 years ago
10

China sells more to other countries than it buys from them. So, China's exports are greater than its imports. This means that Ch

ina has a _____ and a(n) _____ balance of trade.
A. trade regulation, unfavorable

B. trade deficit, favorable

C. trade surplus, favorable
History
2 answers:
Maksim231197 [3]3 years ago
6 0

The correct answer is C.

The Balance of Trade is one of the accounts that constitutes a country's Balance of Payments. This account registers all the transactions which involve sales or purchases of goods or services performed by the nation analyzed and a foreign party.

If the amount of imports equals the amount of exports, a balance is reached. Otherwise:

  • <u>If exports are greater than imports: there is a trade surplus in the Balance of Trade and the country will have net savings. This is the case in China. </u>
  • If exports are smaller than imports: then there is a trade deficit in the Balance of Trade and the country will need to seek for financing to cover that difference.
TiliK225 [7]3 years ago
4 0

The answer is trade surplus, favorable

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