What is the balance of trade?

Question 36

MediumOriginal question

A country's international transactions in a year:

Item	$ billion
Exports of goods	300
Imports of goods	450
Exports of services	200
Imports of services	100
Net income from abroad	−20
Net transfers (remittances, gifts)	30
Net foreign direct investment	60
Net portfolio investment	40
Net external borrowing	30

$-150 billionCorrect answerYour answer$−50 billionCorrect answerYour answer$-40 billionCorrect answerYour answer$150 billionCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Balance of trade = exports of goods − imports of goods = 300 − 450 = $-150 billion.

Worth noting

$−50 billion also counts services, which are not part of the balance of trade.

Ten questions from Balance of Payments, at your own pace.

Ten questions from Balance of Payments, at your own pace.