Chapter 20, Problem 1.1P

To determine

Calculate the values of exports, imports, and balance of trade.

Explanation of Solution

Table-1 shows the values of exports, imports, and balance of trade of the top five trading partners of the U S in 2014 below:

Table-1

Country	Exports(in dollar)	Imports ( in dollar)	BOT (in dollar)
Can	374,864	384,428	−9,564
Chi	167,207	482,323	−315,116
Mex	270,721	320,889	−50,168
Jap	114,712	167,916	−53,205
Germ	77.823	156,986	−79,163

The value of the exports and imports of different products will vary.

In the case of Can, they export and import the same products with the US, such as fuel, vehicle, and machinery.

Chi imports mainly agricultural items from the US and exports of furniture, toys, machinery, clothes to the US.

Mex exports and imports the same products with the US, such as fuel, vehicle, and machinery.

Jap exports and imports the same products with the US, such as medical instruments, aircraft, and machinery.

Germ exports machinery, vehicle, and pharmaceutical products to the US and imports aircraft, machinery, medical instruments, and pharmaceutical products from the US.

Economics Concept Introduction

Exports: Exporting is the process of sending goods and services from one country to another country as part of the trade transaction.

Imports: Importing is the process of implementing goods and services from one country to another country as part of the trade transaction.

Balance of trade: The balance of trade shows the difference between the exports and imports in a country.