Balance of Trade

The definition of TRADE is __________________.

• Importing goods
• to buy or sell goods or services
• Exporting goods

Export means ...

• to get rid of the goods you don't need.

• sending a product to another country for sale.

• to get more goods to be able to make more money.

• bringing a product into a country to be sold.

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product

Watches made in Norway are worn by people in California.

• import 
• export

Tires made in Tennessee factories are used on cars in Europe.

• import
• export

Diamonds found in South Africa are used to make rings in Maine.

• import
• export

Chairs made in North Carolina are flown to Mexico.

• import
• export

Baseball bats made in Kentucky are used by baseball players in Japan.

• import
• export

What is a trade deficit?

• When the value of exports exceeds the value of imports

• when the value of imports exceeds the value of exports

• when the values of imports and exports are equal

• when the value of imports for one nation is greater than the value of imports for another nation

What is a trade surplus?

• when the value of exports exceeds the value of imports

• when the value of imports exceeds the value of exports

• when the values of imports and exports are equal to each other

• when the value of money greater than the amount of goods and services imported