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Eduncle posted an MCQ
October 19, 2019 • 20:51 pm 0 points
  • UGC NET
  • Economics

A Country can have an increased surplus in its balance of trade as a result of :

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    Eduncle Best Answer

    A Country can have an increased surplus in its balance of trade as a result of declining imports and rising exports. A country that imports more goods and services than it exports in terms of value has a trade deficit. Conversely, a country that exports more goods and services than it imports has a trade surplus. The formula for calculating the BOT can be simplified as the total value of imports minus the total value of exports. However, the actual calculation includes several elements, and the amount of the trade deficit or surplus is compared to the country's gross domestic product (GDP).

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