Answered: how can countries attain/account for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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how can countries attain/account for trade equilibria when involved in trade transactions?

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Getting involved in trade transactions means trading in the goods and services with the rest of the world, which can be termed as Exports and Imports of goods & services.

The goods in which trade is done is termed as visible trade while the trade of services is known as invisible trade involving the factor & non-factor services along with the current transfers.

Attaining trade equilibrium is done through maintaining balance of payments which measures the international transactions, through the difference between the exports & the imports of the country known as Balance of Trade.

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