Trade Flashcards
1
Q
Why do countries trade with each other?
A
- Resources are distributed unevenly
- Comparative advantage
- Efficiencies create a surplus
2
Q
What is the trade balance?
A
The trade balance is the difference between the monetary value of the exports and imports of output of a country, measured in the currency of that country
3
Q
What is a positive trade balance known as?
A
A trade surplus
4
Q
What is a negative trade balance known as?
A
A trade deficit
5
Q
What does a positive trade involve?
A
Exporting more than importing
6
Q
A
