If the value of imports for the current year is $3 billion and the value of exports is $8 billion, what effect will this have on

Question

forsale [732]

3 years ago

13

If the value of imports for the current year is $3 billion and the value of exports is $8 billion, what effect will this have on

the country’s trade balance?

Business

1 answer:

Katena32 [7] · Answer 1 · 2022-06-23T06:59:13+03:00

Katena32 [7]3 years ago

6 0

Trade balance is calculated by subtracting imports from exports. In this case, exports are higher than imports which means we have a favorable trade balance. If imports were more than exports, you would have a negative trade balance.