Which statement is true about a net exporter?

Which statement is true about a net exporter?

• A. Exports exceed imports
• B. Imports exceed exports
• C. Trade balance is negative
• D. The country imports more than it exports

Answer: (A)

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.