A favorable balance of trades exists when a country A. has more debt liabilities than assets B. spends more than it saves C. saves more than it spends D. exports more than it imports The export of more servicesE. If Kwansai had a favorable balance of trade and imported $11 billion worth of goods, it exported more than $11 billion worth of goods. The difference between the value of a country's exports and the value of its imports, where the value of exports is greater.Analysts disagree on the impact, if any, of a trade surplus on the economy.Some economists believe that a trade surplus creates employment and increases GDP growth.Others believe that the balance of trade has little impact. Balance of trade, the difference in value over a period of time between a country’s imports and exports of goods and services, usually expressed in the unit of currency of a particular country or economic union (e.g., dollars for the United States, pounds sterling for the United Kingdom, or euros for the European Union). c. sends out more cash than it takes in. A country's balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. C. has more debt liabilities than assets. A favorable balance of trade exists when a country has a higher value of exports than imports. There's a balance of trade when a country's imports equal it's exports. • Lv 5. Ben Bernankeargues that "persistent imbalances within … A. imports more than it exports. A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. Given domestic output (or income) (Y), domestic spending on domestic output (D), exports (X), and imports (M), the balance of trade is B = Y – D = X – M. The balance of payments is the difference, over a period of time, between the total flow coming … When... Our experts can answer your tough homework and study questions. If a country sells more products than it buys, it has a favorable balance, called a trade surplus. A favorable balance of trade exists when a country: A. imports more than it exports. A favorable balance of trade exists when a … Gross Domestic Product: Nominal vs. Real GDP, Net Exports, Capital Flows and Trade Balance, Balance of Payments with Financial Accounts: Measuring Foreign Trade, Fractional Reserve System: Required and Excess Reserves, What Is NAFTA? Balance of trade is an essential concept to understand if you want to learn about global policies. B. exports more than it imports. B. spends more than it saves. A favorable balance of trade exists when a country: A. imports more than it exports. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. All rights reserved. Zeus. 00. Your IP: 138.197.174.231 The trade balance is … Balance of Trade, from Britannica.com.. BALANCE OF TRADE: the difference in value over a period of time between a country’s imports and exports of goods and services, usually expressed in the unit of currency of a particular country or economic union (e.g., dollars for the United States, pounds sterling for the United Kingdom, or euros for the European Union). A nation ’ s balance of trade, also called “ net exports, ” is a measure of the net flow of goods and services between that country and the rest of the world. answer! - Definition, Effects & History, Quantity Theory of Money: Output and Prices, Defining and Measuring the Unemployment Rate, The Impact of Currency Appreciation & Depreciation on Trade Deficits, Sticky Prices: Definition, Theory & Model, Labor Productivity: Definition & Equation, Market Failure: Definition, Types, Causes & Examples, Supply-Side Economics in Fiscal and Monetary Policy, What Is a Recessionary Gap? Exports are goods sent out of the country to be bought by other countries, while imports are paid for and brought into the country. A favourable balance of trade exists when a country Select one: a. imports more than it exports. - Definition & Graph, Foreign Currency Exchange: Supply and Demand for Currency, Allocative Efficiency in Economics: Definition & Example, Short-Run Costs vs. d. saves more than it spends. Question|Asked by lyndang3 A favorable balance of trade exists when a country has a higher value of exports than imports. 31.Which of the following is likely to cause a trade deficit? When Solar Tech, Inc., of Taos, New Mexico, sells thin film solar panels to a firm in Tokyo, Japan, Solar Tech is exporting the panels. balance of trade: translation the difference between the values of exports and imports of a country, said to be favorable or unfavorable as exports are greater or less than imports. c. sends out more cash than it takes in. Added 51 days ago|1/1/2021 5:42:46 AM A higher standard of living A trade deficit is defined as a nation's negative balance of trade, which exists when that country imports more products than it exports. A situation that exists when the value of a nation's exports is in excess of the value of its imports. Definition: Favorable balance of trade is a positive situation where a country exports more goods and services than what it imports. B. exports more than it imports. This preview shows page 33 - 35 out of 71 pages.. 39. Added 2019-08-14 16:22:02 subject Business by Deleted. When the exports of a country are more significant than its import, a favorable balance of trade exists. • Balance of Payments. It is an economic term that refers to the existence of a surplus in the nation’s balance of trade. b. exports more than it imports. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports. Become a Study.com member to unlock this