--%>

Balance of trade

Which transactions find out the balance of trade? When the balance of trade is in surplus?

E

Expert

Verified

Exports of goods and imports of goods find out BOT. Whenever the value of exports of goods is bigger than the value of imports of goods.

   Related Questions in International Economics

  • Q : Define flexible exchange rate Flexible

    Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.

  • Q : Kind of exchange rate State which kind

    State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?

  • Q : Components of capital account of

    Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.

  • Q : Scarcities in International markets

    Assume that many people are willing and capable to pay greater than production costs for certain goods however pervasive shortages exist. International agreements or domestic laws and policy are most likely key factors if we consider sustained scarcities in ma

  • Q : What is Fixed exchange rate system

    Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.

  • Q : Describe the two sources of supply of

    Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.

  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

  • Q : Current account and capital

    Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer:

    Q : Components of current account of BOP

    Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers

  • Q : Financial crisis in United States

    Question 1: The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on the e