Balance of Trade of a country is equivalent to:

The correct answer is: C. difference between exports and imports.

The balance of trade is the difference between the value of a country’s exports and the value of its imports. A country with a trade surplus has a higher value of exports than imports, while a country with a trade deficit has a higher value of imports than exports.

Option A is incorrect because the difference between inward and outward remittances made in foreign exchange is called the balance of payments.

Option B is incorrect because the surplus generated shown in a Trading Account is called the net trading surplus.

Option D is incorrect because the balance of trade is a measure of a country’s international trade.