Explain How Nations Measure Exports and Imports in an Effort

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The Answer is The balance of trade is a basic measure of the difference between a nation's exports and imports.If the total value of exports is higher than the total value of imports,the country has a trade surplus.If the total value of imports is higher than the total value of exports,the country has a trade deficit.
Balance of trade includes the value of both goods and services,and it incorporates trade with all foreign nations.While a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products,a large deficit can be destabilizing.It indicates,after all,that as goods and services flow into a nation,money flows out-a challenge with regard to long-term economic health.
Balance of payments is a measure of the total flow of money into or out of a country.The balance of trade plays a central role in determining the balance of payments.But the balance of payments also includes other financial flows such as foreign borrowing and lending,foreign aid payments and receipts,and foreign investments.
A balance of payments surplus means that more money flows in than out,while a balance of payments deficit means that more money flows out than in.The balance of payments typically corresponds to the balance of trade,since trade is the largest component.
Exchange rates measure the value of one nation's currency relative to the currency of other nations.While the exchange rate does not directly measure global commerce,it certainly has a powerful influence on how global trade impacts both individual nations and their trading partners.The exchange rate of a given currency must be expressed in terms of another currency.

Explain How Nations Measure Exports and Imports in an Effort

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Explain How Nations Measure Exports and Imports in an Effort

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Correct Answer:
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