pucesheep11Lv1
1 Nov 2021
Problem 10
Page 573
Section SELF: CHECK QUESTIONS
Chapter 23: The International Trade and Capital Flows
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1 Nov 2021
Introduction
The commercial balance, known colloquially as the balance of trade, reflects the difference in financial worth between a nation's foreign trade over time. As a result, it is calculated as the net aggregation of a nation's exports and imports, ignoring any financial investments, transfers, and other financial considerations. A positive trade balance occurs when the value of exports exceeds the value of imports, while a deficit balance of trade occurs when the value of imports exceeds the value of exports.
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