Question

If a country exports goods worth of ₹600 crores and imports goods worth of ₹450 crores, the value of Balance of Trade of the country would be ______ of ₹ ______ crores.

Options

• deficit, 150

• surplus, 150

• deficit, 1,050

• surplus, 1,050

Answer 1

If a country exports goods worth of ₹600 crores and imports goods worth of ₹450 crores, the value of Balance of Trade of the country would be surplus of ₹ 150 crores.

Explanation:

Balance of Trade (BOT) is calculated using the formula:

BOT = Exports − Imports

= 600 − 450

= 150 crores

∴ Balance of Trade = 150 crores

Since exports exceed imports, the country has a trade surplus of ₹150 crores.