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JAMB Commerce 1994 Question 18

Question 18

Foreign Trade

The difference between the total payments for imports and the receipts from exports within a given period is referred to as

  1. A.balance of payments
  2. B.balance of trade
  3. C.comparative cost advantage
  4. D.comparative advantage.
Show the answer and explanation

Answer: A (balance of payments)

Explanation

The balance of payments compares a country's total payments to the rest of the world with its total receipts from it over a period.