A balance of trade deficit exists when:
2019
A balance of trade deficit exists when:
- A.
The monetary value of imports exceeds that of exports
- B.
The monetary value added by an exporting nation exceeds that added by an importing nation
- C.
Economies of scale are not achievable
- D.
Supply of imports exceeds the demand for them
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Correct answer: A
A balance of trade deficit occurs when a country's imports are greater in value than its exports over a specific period. This means the country spends more on buying goods and services from other nations than it earns from selling its own goods abroad.