Question

What is the difference between TRADE SURPLUS/DEFICIT and CURRENT ACCOUNT SURPLUS/DEFICIT? Explain in 2-3 sentences.

Answer 1

*Answer :- DIFFERENCE BETWEEN TRADE DEFICIT AND CURRENT DEFICIT

=> TRADE SURPLUS/DEFICIT :-

Trade Deficit Means Country Buy More Product Then They Sold.In That Situation Trade Balance Is Not Good Between Two Countries.In The Long Run Trade Deficit Increase Investment In The Countries Infrastructur.To Manage it Country Have to Export Its Products And Sold More Goods.

=>CURRENT ACC. SURPLUS/DEFICIT :-

Current Acc Deficit Occur when Countries Import Is Higher Than its Export.it Is Always more Than To Trade Deficit.Currenr Acc Deficit May Increase The Export In Long Run Future.Countries Income And Expenditures Are Mentioned In it When Expenditure is More Than The Countries Income Current Acc Deficit Occurs