Based on the total world trade share with the given information, find the nations deficit or surplus.
country A exports to country B: $35
country A exports to country C: $25
country B exports to country A: $30
country B exports to country C: $25
country C exports to country A: $20
country C exports to country B: $40
A exports = 60; imports = 50; surplus = 10
Continue in this way.
We'll be glad to check your answers.
If exports=60 and imports=50 how is 10= surplus? why should it not be a balance or a deficit of 10?
To find the nation's deficit or surplus, we need to calculate the balance of trade for each country. The balance of trade is the difference between a country's exports and imports.
Let's start with country A:
Country A's exports: $35 (to country B) + $25 (to country C) = $60
Country A's imports: $30 (from country B) + $20 (from country C) = $50
Balance of trade for country A: Exports - Imports = $60 - $50 = $10
Therefore, country A has a trade surplus of $10.
Now, let's calculate for country B:
Country B's exports: $30 (to country A) + $25 (to country C) = $55
Country B's imports: $35 (from country A) + $40 (from country C) = $75
Balance of trade for country B: Exports - Imports = $55 - $75 = -$20
Therefore, country B has a trade deficit of $20.
Finally, let's calculate for country C:
Country C's exports: $20 (to country A) + $40 (to country B) = $60
Country C's imports: $25 (from country A) + $25 (from country B) = $50
Balance of trade for country C: Exports - Imports = $60 - $50 = $10
Therefore, country C has a trade surplus of $10.
In summary:
- Country A has a trade surplus of $10.
- Country B has a trade deficit of $20.
- Country C has a trade surplus of $10.