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WAEC Commerce 2021 Question 17

Question 17

Foreign Trade

A country's balance of trade of -$20 million shows that its

  1. A.import volume is greater than export.
  2. B.import and export volumes are equal.
  3. C.export volume is greater than imports.
  4. D.exports are mainly primary products.
Show the answer and explanation

Answer: A (import volume is greater than export.)

Explanation

Balance of trade = visible exports − visible imports. A negative figure means imports were greater than exports.