A nation that has positive net exports enjoys a trade________________.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. surplus
A country with positive net exports is said to have a trade surplus; conversely, a country with negative net exports is said to have a trade deficit.
- Thus, a country's net exports make up a portion of its entire trade balance.
- The total amount of goods and services exported less the total amount of goods and services imported is known as net exports.
- It indicates that the country's imports are less valuable than its exports.
- A nation that has a trade surplus makes more money than it spends on imports from overseas markets.
- A trade imbalance for a certain nation is represented by a negative net export figure.