Ans: a) Net Exports = Total value of Export - Total value of import of a country Trade Surplus is actually defined as positive value of the net exports , i.e. if above equation comes as +ve or exports exceeds imports of a country called as trade surplus Trade Deficit defined as opposite of Trade surplus i.e. when total imports exceeds total imports or net exports become negative. b) International trade i.e. import and export transactions between the countries. So any economy having trade surplus would always have better GDP and growth. So, it is having direct impact on the employment of a country as well. For example, from 1950 to late 1990s, India is called as an agriculture economy and it was exporting majorly jute, cotton, milk, sugar etc. As most of the population are farmers and slowly the shift happen to service sector and manufacturing as per the international demands. And now India is having the largest share of service sector and then manufacturing and last share is of agriculture sector in its GDP. Most of the people are now employed either in IT sector, consulting, banking etc . c) Free trade can kill domestic industry , hence jobs of individual and aggregate level can be affetced positive or negative depends upon the exposure of a country on free trade commodities. d) Balance of Payments (bop): BOP is a record of all transactions of a country made by its residents .It has 3 components Current account, Capital account and Financial account. Financial account is change in the ownership of an asset, Capital account are transactions that dont affect the economic otput and current account measures international trade i.e. net direct payments and income on investments. It is reported for a quarter or a year to understand that of country is on fiscal deficit or surplus. Features : 1) It is a systematic records of all transactions made by the country. 2) It includes all transactions of goods, services and assets. 3) Total debits and credits of international transaction for a country are recorded Solution Ans: a) Net Exports = Total value of Export - Total value of import of a country Trade Surplus is actually defined as positive value of the net exports , i.e. if above equation comes as +ve or exports exceeds imports of a country called as trade surplus Trade Deficit defined as opposite of Trade surplus i.e. when total imports exceeds total imports or net exports become negative. b) International trade i.e. import and export transactions between the countries. So any economy having trade surplus would always have better GDP and growth. So, it is having direct impact on the employment of a country as well. For example, from 1950 to late 1990s, India is called as an agriculture economy and it was exporting majorly jute, cotton, milk, sugar etc. As most of the population are farmers and slowly the shift happen to service sector and manufacturing as per the international demands. And now India is having the largest share of service sector and.

1. Ans: a) Net Exports = Total value of Export - Total value of import of a country
Trade Surplus is actually defined as positive value of the net exports , i.e. if above equation
comes as +ve or exports exceeds imports of a country called as trade surplus
Trade Deficit defined as opposite of Trade surplus i.e. when total imports exceeds total imports
or net exports become negative.
b) International trade i.e. import and export transactions between the countries. So any economy
having trade surplus would always have better GDP and growth. So, it is having direct impact on
the employment of a country as well. For example, from 1950 to late 1990s, India is called as an
agriculture economy and it was exporting majorly jute, cotton, milk, sugar etc. As most of the
population are farmers and slowly the shift happen to service sector and manufacturing as per the
international demands. And now India is having the largest share of service sector and then
manufacturing and last share is of agriculture sector in its GDP. Most of the people are now
employed either in IT sector, consulting, banking etc .
c) Free trade can kill domestic industry , hence jobs of individual and aggregate level can be
affetced positive or negative depends upon the exposure of a country on free trade commodities.
d) Balance of Payments (bop): BOP is a record of all transactions of a country made by its
residents .It has 3 components Current account, Capital account and Financial account.
Financial account is change in the ownership of an asset, Capital account are transactions that
dont affect the economic otput and current account measures international trade i.e. net direct
payments and income on investments.
It is reported for a quarter or a year to understand that of country is on fiscal deficit or surplus.
Features : 1) It is a systematic records of all transactions made by the country.
2) It includes all transactions of goods, services and assets.
3) Total debits and credits of international transaction for a country are recorded
Solution
Ans: a) Net Exports = Total value of Export - Total value of import of a country
Trade Surplus is actually defined as positive value of the net exports , i.e. if above equation
comes as +ve or exports exceeds imports of a country called as trade surplus
Trade Deficit defined as opposite of Trade surplus i.e. when total imports exceeds total imports
or net exports become negative.
b) International trade i.e. import and export transactions between the countries. So any economy
having trade surplus would always have better GDP and growth. So, it is having direct impact on
the employment of a country as well. For example, from 1950 to late 1990s, India is called as an

2. agriculture economy and it was exporting majorly jute, cotton, milk, sugar etc. As most of the
population are farmers and slowly the shift happen to service sector and manufacturing as per the
international demands. And now India is having the largest share of service sector and then
manufacturing and last share is of agriculture sector in its GDP. Most of the people are now
employed either in IT sector, consulting, banking etc .
c) Free trade can kill domestic industry , hence jobs of individual and aggregate level can be
affetced positive or negative depends upon the exposure of a country on free trade commodities.
d) Balance of Payments (bop): BOP is a record of all transactions of a country made by its
residents .It has 3 components Current account, Capital account and Financial account.
Financial account is change in the ownership of an asset, Capital account are transactions that
dont affect the economic otput and current account measures international trade i.e. net direct
payments and income on investments.
It is reported for a quarter or a year to understand that of country is on fiscal deficit or surplus.
Features : 1) It is a systematic records of all transactions made by the country.
2) It includes all transactions of goods, services and assets.
3) Total debits and credits of international transaction for a country are recorded