Question

The nation of Kandabar exports $75 million worth of products and services and imports $52 million worth of products and services. Kandabar has a(n):_________.
a) trade surplus.b) unfavorable balance of trade.c) trade deficit.d) trade embargo.

Answer 1

Answer:

Option (a) is correct.

Explanation:

Given that,

Value of good and services exported from Kandabar = $75 million

Value of good and services imported by Kandabar = $52 million

Therefore,

Balance of trade or trade balance:

= value of exports - value of imports

= $75 million - $52 million

= $23 million

Since the value of exports is greater than the value of imports, the nation has a trade surplus of $23 million.