China's Trade Balance Shifted from Surplus to Deficit

Steps:

• Compute year 1 trade balance: China's exports to Brazil exceed imports, yielding positive value (surplus).
• Compute year 2 trade balance: China's imports from Brazil exceed exports, yielding negative value (deficit).
• Compare balances: Year 1 positive shifts to year 2 negative.
• Determine change: Transition from surplus to deficit.

Why D is correct:

• Trade balance formula (exports - imports) defines surplus as positive and deficit as negative; the sign flip from year 1 to year 2 matches moving from surplus to deficit.

Why the others are wrong:

• A: Requires surplus in both years with decreasing positive balance.
• B: Requires deficit in both years with increasing negative balance.
• C: Requires shift from negative (deficit) to positive (surplus) balance.

Final answer: D