Which of the following best defines balance of trade?
A) purchasing products in other countries and bringing them into one's own country
B) the total value of a nation's exports minus the total value of its imports over some period of time
C) the total flow of money into the country minus the total flow of money out of the country over some period of time
D) the ability to specialize in the production of a specific product and trade it for other needed products
E) the ability to produce a certain product more efficiently than any other nation

Question

Quizplus · Accepted Answer

Balance of trade refers to the difference between a nation's exports (goods and services produced domestically and sold to other countries) and imports (goods and services produced in other countries and purchased by domestic consumers). When exports exceed imports, the balance of trade is said to be positive, or a trade surplus. When imports exceed exports, the balance of trade is negative, or a trade deficit.

Which of the Following Best Defines Balance of Trade