A deficit in balance of trade occurs when?

Assessment: WAEC SSCE - Commerce - 1989 (Objective) Subject: Commerce

Question 1 Report

A deficit in balance of trade occurs when?
Answer Details
A deficit in balance of trade occurs when a country imports more goods and services (visible imports) than it exports (visible exports). This means that the total payments a country makes to other countries (including both visible and invisible payments) exceed the payments it receives from other countries through visible exports. The deficit can be partially offset if the country earns more income from invisible exports (such as services and investments) than it pays for invisible imports (such as tourism and royalties).

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