What happens when the value of a country’s exports is higher than the value of its imports(1 point)
A. country makes a higher profit.
B. country has a market economy.
C. A country is recognized as a manufacturing nation.
D. country becomes less dependent on other nations.
D. country becomes less dependent on other nations.
When the value of a country's exports is higher than the value of its imports, it means that the country is experiencing a trade surplus. To understand the implications of this, let's break down each answer choice:
A. While it is generally true that a country making a higher profit is associated with trade surpluses, it is not the direct consequence of the scenario mentioned. Trade surpluses can lead to economic growth, job creation, and increased national savings, which can contribute to overall profitability, but it does not necessarily mean that the country will experience a higher profit immediately.
B. The fact that a country has a market economy is not directly related to having a trade surplus. A market economy refers to an economic system where decision-making and resource allocation are predominantly determined by supply and demand forces. Trade surplus or deficit can occur in both market and non-market economies.
C. While it is possible that a country with a trade surplus may be recognized as a manufacturing nation, the relationship is not always direct. A country can have a trade surplus due to other factors like natural resources, services, or advanced technology. Being recognized as a manufacturing nation depends on various factors beyond just trade surplus.
D. The most accurate answer is that when the value of a country's exports exceeds the value of its imports, it becomes less dependent on other nations. A trade surplus indicates that the country is exporting more than it is importing, and therefore, it can meet its domestic needs without relying heavily on foreign imports. This can increase economic self-sufficiency and reduce dependence on other nations for goods and services.
In this case, the correct answer is D. country becomes less dependent on other nations.