A Nation Has a Merchandise Trade Deficit When

question 34

Multiple Choice

A nation has a merchandise trade deficit when

• A) it has a surplus in its balance of payments.
• B) it has a deficit in its balance of payments.
• C) the value of its imports of goods is greater than the value of its exports of goods.
• D) its current account is in surplus and its capital account is in deficit.

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Definitions:

Dead Stock

Unsold goods that have been in inventory for a long time and are not expected to be sold due to their obsolescence or lack of demand.

Supplier Relationships

Supplier relationships pertain to the interactions and dealings between a business and its suppliers, involving the negotiation of terms, management of supply, and collaboration for mutual benefit.

Inventory

The total amount of goods or materials held in stock by a company or business.

Original Value

The initial monetary worth of an asset or investment at the time of its purchase or acquisition.