Question

The term balance of trade denotes the difference between ______.

Options

• exports and imports of services

• export and import of goods

• net unilateral transfers

• income receipts from abroad and income payments made to foreign countries by the residents of a country

Answer 1

The term balance of trade denotes the difference between export and import of goods.

Explanation:

The balance of trade is the difference between exports and imports of visible goods. Services, transfers and income are recorded under the current account and do not define the balance of trade.