The definition of Balance of Trade from various sources including the textbook and the notes is: Goods and services: exports less imports In the examiners report for Sept 2011 Q36, the answer appears to included only the goods and not the services. Can anyone explain? I'm fully expecting to be shot down in flames and wonder how on earth I could have been so tired and missed something so obvious... Thanks
Don't worry - you are correct. The balance of trade is now defined as the balance of goods and services, so the answer should have been a deficit of £100m. (The examiners allowed an answer of -£50m, ie just the balance of goods, because this used to be the definition used.)
