--%>

Balance of trade

Which transactions find out the balance of trade? When the balance of trade is in surplus?

E

Expert

Verified

Exports of goods and imports of goods find out BOT. Whenever the value of exports of goods is bigger than the value of imports of goods.

   Related Questions in International Economics

  • Q : Write short notes on autonomous

    distinguish between autonomous transactions and accommodating transactions under balance of payments

  • Q : What is autonomous or public investment

    Autonomous or public investment: It is a type of investment that is not of profit motivated.

  • Q : Macroeconomic adjustment and EMU The

    The practice considers the Treasury’s elucidation of the consequence on macroeconomic adjustment of joining the euro.

  • Q : Components of current account of BOP

    Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers

  • Q : Define flexible exchange rate Flexible

    Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.

  • Q : What is managed floating exchange rate

    Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.

  • Q : Problem regarding Comparative advantage

    Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency

  • Q : Why Demand for foreign exchange is made

    Demand for foreign exchange is prepared to: (A) Purchase services and goods (B) Send gifts and funding(C) Speculate the value of foreign currencies, (D) Invest and procure financial assets

  • Q : Describe balance of payment Accounts

    Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.

  • Q : State the two sources of demand of

    State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.