Balance of trade calculated as exports minus imports

Steps:

• Identify total exports of goods and services: $20 million.
• Identify total imports of goods and services: $13 million.
• Subtract imports from exports: $20M -$13M = $7M.
• Determine result: positive value indicates surplus.

Why C is correct:

• Balance of trade formula (exports - imports) yields +$7 million, defining a surplus per international trade accounting standards.

Why the others are wrong:

• A: Assumes deficit, but calculation shows surplus.
• B: Assumes larger deficit, ignoring positive result.
• D: Assumes larger surplus, but difference is exactly $7 million.

Final answer: C