Answered: Merchandise exports Merchandise imports…

Merchandise exports Merchandise imports Services exports Services imports Income receipts Income payments Unilateral transfers $ 271,594 $ 281,649 $ 17,512 $ 23,784 $ 7,972 $ 26,036 $ 24,197 $

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section: Chapter Questions

Problem 16AA

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Question

Use the information in the following table on Mexico’s 2007 international transactions to answer

1. What is the balance of trade?

Merchandise exports
Merchandise imports
Services exports
Services imports
Income receipts
Income payments
Unilateral transfers
$ 271,594
$ 281,649
$ 17,512
$ 23,784
$ 7,972
$ 26,036
$ 24,197

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

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