Calculating Trade balance
Suppose the value of exports of goods of a country is Rs. 1,000 crores and the value of imports of goods is Rs. 1,200 crores, what will be the trade balance (or balance of trade)?
Expert
Balance of trade = value of exports – value of imports = 1,000 – 1,200. = Rs. - 200 crores
IN which situation, there is a deficit in the balance of trade.
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