Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The country exports more than it imports
B
The country imports more than it exports
C
The country has a balanced trade
D
The country has no trade activities
Understanding the Answer
Let's break down why this is correct
Answer
A high import/export ratio shows how much a country imports compared to how much it exports. When the ratio is high, it means the country is buying more goods from other countries than it is selling to them. This situation can lead to a trade deficit, where the country spends more money on imports than it earns from exports. For example, if a country imports $100 million worth of goods but only exports $60 million, the import/export ratio would be 1. 67, indicating it relies heavily on imports.
Detailed Explanation
A high import/export ratio means a country buys more from other countries than it sells to them. Other options are incorrect because Some might think a high ratio means selling more than buying; People may believe a high ratio means balanced trade.
Key Concepts
Import/export ratio
Topic
Currency Exchange and Trade Balance
Difficulty
easy level question
Cognitive Level
understand
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