Question

In one or two sentences, explain if a country would rather have a trade surplus or a trade deficit. Then, in two or three sentences, explain the difference between balance of trade and balance of payments.

Answer 1

Answer:

it is important for a country to have a trade surplus rather than trade deficit because trade surplus indicate an increase in economic productivity within the country Balance of trade is only the difference in value between export and import, meanwhile balance of payments mean the record.   we have to understand that trade surpluses and trade deficits can be beneficial or harmful for an economy in certain circumstances. A country would rather have a trade surplus because it means that it has plenty of resources to support its economic activity.

Explanation:

e

Answer 2

Answer:

Instead of a trade deficit, a country should strive for a trade surplus because this indicates more economic production within the nation.

Explanation:

• Balance of payments refers to the total, whereas the balance of trade just measures the value of exports and imports.
• We must recognize that, depending on the situation, trade surpluses and deficits can either help or hurt an economy.
• Since a trade surplus indicates that a nation has ample resources to maintain its economic activities, it is preferable for that nation to have one.

• The difference between items exported and imported is the balance of trade (BoT).
• The discrepancy between foreign exchange intake and outflow is known as the balance of payments (BoP).
• Goods-related transactions are covered in the BOT. BoP includes transactions including transfers, products, and services.

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