Question

Problem 21

Answer 1

Introduction

The disparity between the financial worth of a nation’s trade flows during a certain timeframe is known as the balance of trade, commercial balance, or net exports (often abbreviated as NX). A difference is often drawn between a trade balance for products and one for activities. The balance of trade is a metric that tracks the movement of trade flows through time. The term “balance of commerce” does not imply that trade flows are “equally balanced.”