Question

When a country's export is higher than the imports, the net earning from trade is ___________.

• A. negative
• B. constant
• C. positive
• D. none of the above

Answer 1

Answer: (C)

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.