Question

In 2010, a small country imported goods worth $500 billion and exported goods worth $443 billion. it exported services worth $248 billion and imported services worth $330 billion. payments on investments abroad totaled $199 billion, while returns paid on foreign investments were $125 billion. unilateral transfers from the country to other nations amounted to $94 billion. what was the country's merchandise trade deficit for 2010?

Answer 1

A trade deficit is an economic amount of a negative balance of trade in which a country's imports surpasses its exports. In this problem, imported goods are $500 billion while the exported goods are $443 billion. Deduct the 443 from the 500 to get the trade deficit which is $57 billion.