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26 August, 10:44

Suppose the country of Lilliput exported $ 293 billion worth of goods and imported $ 405 billion worth of goods in the last calendar year. Calculate Lilliput's balance of trade. $ - 112 billion Which type of trade balance is Lilliput running?

neither a trade deficit nor a trade

surplus a trade

surplus a trade deficit

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  1. 26 August, 11:14
    0
    A trade deficit.

    Explanation:

    Given that,

    Value of exports = $293 billion

    Value of imports = $405 billion

    Balance of trade refers to the difference between a country's value of exports and its value of imports for a given time period.

    Balance of trade:

    = Value of exports - Value of imports

    = $293 billion - $405 billion

    = - $112 billion

    Therefore, this country has a negative trade balance and it is reflected as a trade deficit.
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