2 Nov 2021
Problem 20
Page 574
Section SELF: CHECK QUESTIONS
Chapter 23: The International Trade and Capital Flows
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2 Nov 2021
Introduction
The level of commerce in a country may appear to be similar to the balance of trade at first glance, however, they both are obviously very different. It is absolutely conceivable for a nation to get a strong volume of trade defined by its own export earnings as a percentage of GDP—while simultaneously having a near-balanced export-import ratio. A high level of commerce means that a significant share of the country's output is exported. It's also conceivable for a country's commerce to accounting for a small proportion of GDP compared to global standards, yet the gap among exports and imports to be rather big.
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