Asked by Caitlin Gamble on Jul 17, 2024
Verified
The merchandise trade balance does not include:
A) exports of refrigerators.
B) imports of automobiles.
C) exports of agricultural products.
D) shipping and insurance services.
E) imports of food items with heavy tariffs.
Merchandise Trade Balance
The difference between a country's exports and imports of physical goods, indicating a trade surplus or deficit.
Refrigerators
Appliances used for keeping food and drinks cold, employing the principles of thermodynamics to transfer heat from the inside to the outside environment.
Shipping
The process of transporting goods and merchandise by land, air, or sea.
- Familiarize yourself with the aspects that define a country's merchandise trade balance.
- Differentiate between tangible and intangible products in international trade.
Verified Answer
CC
Claudia CastleberryJul 23, 2024
Final Answer :
D
Explanation :
The merchandise trade balance only accounts for the physical goods being traded between countries, and not for the services related to those goods. Shipping and insurance services would fall under the category of "invisible trade" and would not be included in the merchandise trade balance.
Learning Objectives
- Familiarize yourself with the aspects that define a country's merchandise trade balance.
- Differentiate between tangible and intangible products in international trade.