Suppose South Korea imports $4 billion in goods and services and exports $2.5 billion in goods and services. South Korea's trade balance is . This trade balance is called a .

A trade deficit occurs when the value of a country's imports exceeds value of its exports —with imports and exports referring both to goods, or physical products, and services. In simple terms, a trade deficit means a country is buying more goods and services than it is selling. An overly simplistic understanding means that this would generally hurt job creation and economic growth in the deficit-running country.

Balance of Trade formula = Country’s Exports – Country’s Imports.

South Korea imports=$4 billion

South Korea Exports=$2.5 billion

Balance of Trade formula=$2.5 billion-$4 billion=-$1.5 billion trade deficit

Suppose South Korea imports $4 billion in goods and services and exports $2.5 billion in goods and services. South Korea's trade balance is ____________. This trade balance is called a ____________.

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Suppose South Korea imports $4 billion in goods and services and exports $2.5 billion in goods and services. South Korea's trade balance is . This trade balance is called a .