Which transactions determine the Balance of Trade? When is Balance of Trade in Surplus?

6 views

2 Answers

Exports of goods and imports of goods.

When the value of exports of goods is greater than the value of import of goods, it is called Surplus Balance of Trade.

6 views

Balance of trade refers to difference between the amounts of exports and imports of visible items (goods). It includes only visible items (goods). 

 BOT = Export – Import 

 Balance of trade is in surplus when exports are more than imports or BOT is positive.

6 views