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In a given year, a country’s exports are worth $12 billion and its imports are worth $4 billion. How much is the trade deficit or surplus for this country?


$10 billion deficit

$8 billion deficit

$4 billion surplus

$7 billion surplus

$8 billion surplus

Respuesta :

pristina

Answer: Trade balance of a country is given by the difference between its exports and imports. If Exports of a country exceed its imports then we have a trade surplus. If Imports are more than its exports then we have a trade deficit.

Trade Balance [tex] Trade Balance = Exports - Imports
= $12 - $4
= $8 [/tex]

Since the difference is positive we have a trade surplus of $8.

Lanuel

Based on the calculations, the trade surplus for this country is equal to: D. $8 billion surplus.

What is trade surplus?

Trade surplus simply refers to the amount of money by which the cost of a exports in a particular country exceeds the value of its imports.

This ultimately implies that, that this country is experiencing a trade surplus because its exports is greater than its imports within a given time period.

How to calculate the trade surplus?

Mathematically, the trade surplus for a country can be calculated by using this formula:

Trade surplus = Exports - Imports

Trade surplus = 12 billion - 4 billion

Trade surplus = $8 billion.

Read more on trade surplus here: https://brainly.com/question/4126723

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