Question

the.......of trade refers to the types of goods and services we export and import(direction/composition)​

Answer 1

the direction .

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Answer 2

The direction of trade refers to the types of goods and services we export and import.

• In simple terms, if the direction of trade is more towards the domestic side, (there is a trade deficit), then the country is importing more than it is exporting and vice versa also holds true.
• This means that if the direction of trade is more towards the other country's side, (there is a trade surplus), then the country is exporting more than it is importing. This is an ideal condition for the Balance of Payments.  

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