A country exported goods worth Rs 2500 crore whereas, its imports amounted to Rs 1200 crore. The services exported were 110 crore. What will be the value of "Trade balance"?
Answer & explanation
Correct answer: option 1
The correct answer is option 1: 1300 crore
Trade balance which is also known as balance of trade is the difference between exports and imports of VISIBLE items ONLY.
Balance of Trade = Exports - Imports
BoT = 2500 - 1200
BoT= 1300
NOTE - Export of services will not be included in this as it is not a visible item.