Interpreting Trade Balances in the Current Account

Steps:

• Examine the table for exports and imports of goods and services for each country.
• Calculate the balance for goods and services by subtracting imports from exports.
• Compare Singapore's balance: positive value indicates a surplus.
• Verify no overall current account data contradicts the trade surplus conclusion.

Why C is correct:

• A trade surplus occurs when exports of goods and services exceed imports, as defined in balance of payments accounting, matching Singapore's table data.

Why the others are wrong:

• A: Table shows Singapore's exports exceed Canada's, so Canada did not export more.
• B: Singapore's positive trade balance suggests a surplus, not a deficit; Canada's data is insufficient to confirm a deficit for both.
• D: Table provides no price data, only values, so import costs cannot be compared.

Final answer: C