Problem 2

The trade balance is a metric used to measure the difference among a nation's trade balance. Commodities account for much less than half of the entire productivity throughout most high-income economies, whereas services account for more than half. Although global trade in goods and services has increased over the last two decades, the percent of international trade still comes in the form of commodities instead of activities. The balance of payments needs to take into account the flow of products, services, and money into or out of a country in the name of investment and unilateral transfers.