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If balance of trade is showing a deficit of Rs 200 crore and the value of exports is Rs 700 crore, then, the value of imports would be:
- a)Rs 900 crore
- b)Rs 700 crore
- c)Rs 500 crore
- d)Rs 200 crore
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
If balance of trade is showing a deficit of Rs 200 crore and the value...
Imports = Exports - Balance of Trade = 700 - (-200) = 900
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If balance of trade is showing a deficit of Rs 200 crore and the value...
Balance of Trade:
The balance of trade is the difference between the value of a country's exports and the value of its imports during a specific period. It is a measure of the international trade flow of goods and services.
Deficit:
A deficit in the balance of trade occurs when the value of imports exceeds the value of exports. It indicates that a country is buying more goods and services from other countries than it is selling to them.
Given Information:
- Balance of trade deficit = Rs 200 crore
- Value of exports = Rs 700 crore
Calculation:
To find the value of imports, we can use the formula:
Value of Imports = Value of Exports - Balance of Trade Deficit
Substituting the given values:
Value of Imports = Rs 700 crore - Rs 200 crore
= Rs 500 crore
Therefore, the value of imports would be Rs 500 crore.
Explanation:
The balance of trade deficit indicates that the value of imports is higher than the value of exports. In this case, the deficit is Rs 200 crore, which means that the value of imports is Rs 200 crore more than the value of exports.
To calculate the value of imports, we subtract the balance of trade deficit from the value of exports. In this case, the value of exports is Rs 700 crore, and the balance of trade deficit is Rs 200 crore.
By subtracting Rs 200 crore from Rs 700 crore, we find that the value of imports is Rs 500 crore.
Therefore, the correct answer is option 'C' - Rs 500 crore.
The balance of trade is the difference between the value of a country's exports and the value of its imports during a specific period. It is a measure of the international trade flow of goods and services.
Deficit:
A deficit in the balance of trade occurs when the value of imports exceeds the value of exports. It indicates that a country is buying more goods and services from other countries than it is selling to them.
Given Information:
- Balance of trade deficit = Rs 200 crore
- Value of exports = Rs 700 crore
Calculation:
To find the value of imports, we can use the formula:
Value of Imports = Value of Exports - Balance of Trade Deficit
Substituting the given values:
Value of Imports = Rs 700 crore - Rs 200 crore
= Rs 500 crore
Therefore, the value of imports would be Rs 500 crore.
Explanation:
The balance of trade deficit indicates that the value of imports is higher than the value of exports. In this case, the deficit is Rs 200 crore, which means that the value of imports is Rs 200 crore more than the value of exports.
To calculate the value of imports, we subtract the balance of trade deficit from the value of exports. In this case, the value of exports is Rs 700 crore, and the balance of trade deficit is Rs 200 crore.
By subtracting Rs 200 crore from Rs 700 crore, we find that the value of imports is Rs 500 crore.
Therefore, the correct answer is option 'C' - Rs 500 crore.
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If balance of trade is showing a deficit of Rs 200 crore and the value of exports is Rs 700 crore, then, the value of imports would be:a)Rs 900 croreb)Rs 700 crorec)Rs 500 crored)Rs 200 croreCorrect answer is option 'A'. Can you explain this answer?
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