Lesson 71: Imports and Exports

If Argentina exports $120 million and imports $135 million in goods, what is Argentina's balance of trade?

-$15 million

What kinds of goods are typically exported by developed countries?

Capital- and skill-intensive products

An increase in leather prices in Argentina will not affect the export of Argentinean leather shoes.

False

The United States has run a trade surplus for almost every year in the last three decades.

False

Assume that Portugal's balance of trade is $240,000,000,000. This figure indicates that

Portugal is running a trade surplus.

A furniture store in Nepal buys furniture from a manufacturer in India. This transaction represents an export for India and an import for Nepal.

True

A trade deficit occurs when a country imports more than it exports.

True

International trade refers to the exchange of goods and services among countries.

True

If American farmers sell part of their corn production to Mexican consumers, their sale represents

an export for the United States and an import for Mexico.

Balance of trade is defined as

the difference in the monetary value of a country's exports and imports for a specific period.