Question

Difference between money paid to and money received from other nations in trade is called balance of trade.

Answer 1

Answer:

Difference between money paid to and money received from other nations in trade is called balance of trade is a TRUE statement.

Explanation:

The difference between the export and the import done by the country is usually termed as the balance of trade. Even though the sum of payments and receipts is necessarily equal, in different types of transactions there will be disparities — excesses of transactions and receipts, named deficits and surpluses.

Trade balance does not include any goods (not even product import and export). For example, China, a nation where many of the globe's consumer goods are manufactured and exported, has registered a trade surplus since 1995. Because of its dependence on oil imports and consumer goods, the United States has shown a trade deficit since 1976.

Answer 2

Answer:

False

Explanation:

The answer above me is wrong

Difference between money paid to and money received from other nations in trade is called balance of payments

McGraw Hill Understanding Economics

"Another argument in the free trade debate involves the balance of payments—the difference between the money a country pays out to, and receives from, other nations when it engages in international trade." (505)