Question

The Balance of Trade (BoT) is measured as:

Options

• \[ \text{BoT} = V_{x} - V_{m} \]

• \[ \text{BoT} = V_{x} + V_{m} \]

• \[ \text{BoT} = \frac{V_{x}}{V_{m}} \]

• \[ \text{BoT} = V_{m} - V_{x} \]

Answer 1

The Balance of Trade equals the value of goods exported minus the value of goods imported: BoT = V_x − V_m, where V_x is the value of goods exported and V_m is the value of goods imported.