In a given year, a country's total sales of goods and services to foreign nations amount to $450 billion, while its total purchases of goods and services from foreign nations amount to $375 billion. Which of the following accurately describes this country's international trade situation for that year?

Economic Consequences of International Trade Patterns

Analyzing Production and Consumption

Evaluating the Desirability of a Trade Surplus

A country reporting a positive value for its trade balance (total value of goods and services sold to other countries minus the total value of goods and services purchased from them) signifies that it is purchasing more from other countries than it is selling to them.

Match each international trade scenario with the correct term that describes it.

When the total monetary value of a nation's goods and services sold to other countries is greater than the total monetary value of goods and services it buys from other countries, the nation is said to have a ____.

Analyzing a Nation's International Trade Data

Deconstructing a Trade Surplus

A small island nation's economy records the following international transactions in a single year:

• Foreign tourists spend $200 million on hotels and services within the nation.
• It sells $150 million worth of coffee to other countries.
• Its citizens spend $50 million on vacations abroad.
• It purchases $120 million worth of foreign-made machinery.
• It buys $90 million in imported oil.

Based on these transactions, how would you characterize this nation's trade balance for the year?