Understanding Net Imports and Trade Deficit in Global Economy

Goods and services purchased from international sources are:A. Exports.B. Imports.C. Net exports.D. Net imports.

B. Imports.

D. Net imports.

Goods and services purchased from international sources are considered imports. When a country imports more goods and services than it exports to other countries, it is said to have a trade deficit, which means it has net imports. Conversely, when a country exports more goods and services than it imports, it has a trade surplus, meaning it has net exports. In this case, since the question is asking about purchases from international sources, it implies that the country is importing more than it is exporting, and therefore the answer is net imports.

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