Question

The ___________ net earning from foreign trade is added to the national income of the country.

• A. positive
• B. negative
• C. constant
• D. total

Answer 1

The correct option is A positive

Import refers to purchasing of goods and services from international market in the country and export refers to selling goods and services in the international market. So export is an income for the country whereas import is an expense for the country. Therefore, when export is higher than imports then the net earnings from the trade of a country is positive which in added to the national income of the economy.