Which of these would worsen a country's balance of trade?

A rise in its exports of carsCorrect answerYour answerA rise in foreign tourists visiting itCorrect answerYour answerA rise in remittances from abroadCorrect answerYour answerA rise in the world price of the crude oil it importsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A costlier import bill raises imports of goods, which lowers exports − imports.
Tourism and remittances are invisibles, outside the balance of trade.

Concept: What affects the trade balance
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsBalance of trade and current account balance

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

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

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Which of these would worsen a country's balance of trade?

Explanation