Which statement is true about a net exporter?

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Study for the MTTC Business Management, Marketing, and Technology (098) Test. Use flashcards and multiple choice questions with detailed explanations for each question. Prepare effectively for your exam!

Multiple Choice

Which statement is true about a net exporter?

Explanation:
A net exporter sells more to other countries than it buys from them, so exports exceed imports and the country runs a positive trade balance. That makes the statement that exports exceed imports the true description of a net exporter. If imports were greater than exports, the country would have a trade deficit and be a net importer, which is the opposite situation. Saying the country imports more than it exports describes that opposite condition, and a negative trade balance signals a deficit rather than a surplus.

A net exporter sells more to other countries than it buys from them, so exports exceed imports and the country runs a positive trade balance. That makes the statement that exports exceed imports the true description of a net exporter. If imports were greater than exports, the country would have a trade deficit and be a net importer, which is the opposite situation. Saying the country imports more than it exports describes that opposite condition, and a negative trade balance signals a deficit rather than a surplus.

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