If India exports goods worth 20 crores and imports goods worth 30 crores it will have a ........

Introductory Macro Economics Open Economy Macroeconomics

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If India exports goods worth 20 crores and imports goods worth 30 crores, it will have a_________________.

Surplus of 10 crores in balance of trade

Deficit of 10 crores in balance of trade

Deficit of 50 crores in balance of trade

None of these

Explanation:

Option (2) is correct.
Explanation: The term "balance of trade" denotes the difference between the exports and imports of goods in a country. Balance of trade refers to the visible items only. It is the
difference between the value of merchandise (goods) exports and imports. Balance of Trade Export of visible goods - Import of visible goods. Here, exports of goods worth ?20 crore is less than the imports of goods worth 30 crore. Therefore, there is a deficit of 10 crores in balance of trade.

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