IGCSE Development Studies: Specimen Questions with Answers 54 - 55 of 98

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Balance of Trade

Question 54 (4 of 7 Based on Passage)

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Name the products imported and exported by US

Explanation

Imports of US from China and Exports of US to China
Imports of US from ChinaExports of US to China
Telephone for cellular networks or for other wireless networksAero planes and other aircrafts
Automatic data processing machineSoya beans
Tricycle, scooters and similar wheeled toys and other toysVehicles with only spark ignition, internal combustion reciprocating piston engine
Communication apparatusElectronics, integrated circuits, processors, and controllers

Question 55 (5 of 7 Based on Passage)

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What do you mean by balance of trade?

Explanation

The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period. It is one of the key indicators of economy. It deals with the exports and imports of visible items only and considers only merchandise exports and imports only.

Importance of Balance of Trade Are

  • It shows how a country competes in a global market place
  • It determines the health of economy and its relationship with the rest of the world.
  • It includes physical goods and intangible services.
  • Important piece of understanding the global puzzle of international trade.