What is the formula of Trade balance??
Answers
Answer:
The formula of trade balance is:-
country's export and county's import. ....
The main significant of trade balance is to measure country's net income earned.
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Answer:
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Explanation:
Balance of Trade Definition:-
The balance of trade (BOT) is defined as the country’s exports minus its imports. For any economy current asset, BOT is one of the significant components as it measures a country’s net income earned on global assets. The current account also takes into account all payments across country borders. In general, the trade balance is an easy way to measure as all goods and services must pass through the customs office and are thus recorded.
Formula:-
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Balance of Trade formula = Country’s Exports – Country’s Imports.
For the balance of trade examples, if the USA imported $1.8 trillion in 2016, but exported $1.2 trillion to other countries, then the USA had a trade balance of -$600 billion, or a $600 billion trade deficit.
$1.8 trillion in imports – $1.2 trillion in exports = $600 billion trade deficit
For any economy current asset, the balance of trade is one of the significant components as it measures a country’s net income earned on global assets. The current account also takes into account all payments across country borders. In general, the trade balance is an easy way to measure as all goods and services must pass through the customs office and are thus recorded.