Question

In 1 or 2 sentences, explain if a country would rather have a trade surplus or a trade deficit. Then, in 2 or 3 sentences, explain the difference between balance of trade and balance of payments.

Answer 1

it is important for a country to have a trade surplus rather than trade deficit because trade surplus indicate an increase in economic productivity within the country

Balance of trade is only the difference in value between export and import, meanwhile balance of payments mean the record of all financial transaction between the country and the rest of the world

hope this helps

Answer 2

In 1 or 2 sentences, explain if a country would rather have a trade surplus or a trade deficit. Then, in 2 or 3 sentences, explain the difference between balance of trade and balance of payments.

Answer: we have to understand that trade surpluses and trade deficits can be beneficial or harmful for an economy in certain circumstances. A country would rather have a trade surplus because it means that it has plenty of resources to support its economic activity.

I hope it helps, Regards.