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