Question

Why would an analyst include among other things, airplane parts, legal services and software, in an analysis of international economic trade? a. to determine the merchandise trade balance.b. to determine the balance of trade in services.c. to determine the current account balance.d. to determine the international flow of income.

Answer 1

Answer: c. to determine the current account balance

Explanation:

International trade is simply defined as the exchange of goods and services which takes place between countries. It should be noted that international trade gives countries and consumers and the exposure to the goods and services that are not available in their own countries.

An analyst would include airplane parts, legal services and software, in an analysis of international economic trade so as to determine the current account balance.