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Novakia is a small country that has abundant natural resources. Annually, it exports goods worth $100 billion and imports goods worth $60 billion. Also, its annual revenue through taxes is $80 billion and expenditure is $100 billion. In this scenario, what is the balance of trade of novakia? $100 billion

Respuesta :

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Answer: Balance of Trade is $40 billion.

Explanation:

Balance of trade of a country refers to the difference between its total value of exports and total value of imports. If the value of exports is greater than value of imports the country has a surplus balance of trade.

[tex]Balance of Trade = Exports - Imports[/tex]

[tex]Balance of Trade = $100 - $60 billion[/tex]

[tex]Balance of Trade = $40 billion[/tex]

Thus, the country has a balance of trade of $40 billion.

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