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If usa imported $1. 8 trillion in 2016 but exported $1. 2 trillion to other countries, why did 600 bilyon became the balance of trade?

1 Answer

2 votes
The balance of trade is calculated by subtracting the value of exports from the value of imports. In this case, the United States imported $1.8 trillion in 2016 and exported $1.2 trillion to other countries.

To find the balance of trade, we subtract the value of exports from the value of imports:

$1.8 trillion (imports) - $1.2 trillion (exports) = $600 billion

Therefore, the $600 billion represents the balance of trade, which indicates that the United States had a trade deficit of $600 billion in 2016. This means that the value of imports exceeded the value of exports by $600 billion.
answered
User Azzabi Haythem
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