Question

What is multilateral settlement system how did britain use this system to balance its trade?

Answer 1

A trade surplus is a positive balance oftrade, where a country's exports exceed its imports. Britain used itssurplus to balance its trade deficits with other countries i.e. with countries from which Britain was importing more than it was selling to. In this way, a multilateral settlement systemworks.

Answer 2

Explanation:

♥️♥️♥️ A multilateral settlement system allows one countrys deficit with another country to be settled by its surplus with a third country. For example, Britain used its trade surplus with India to balance its trade deficits with other countries that is, with those countries from which Britain was importing more than it was selling to.