China sells more to other countries than it buys from them. so, china's exports are greater than its imports. this means that china has a and a(n) balance of trade.
a. trade regulation, unfavorable
b. trade deficit, favorable
c. trade surplus, favorable

The correct answer is C.

The Balance of Trade is one of the accounts that constitutes a country's Balance of Payments. This account registers all the transactions which involve sales or purchases of goods or services performed by the nation analyzed and a foreign party.

If the amount of imports equals the amount of exports, a balance is reached. Otherwise:

If exports are greater than imports: there is a trade surplus in the Balance of Trade and the country will have net savings. This is the case in China. If exports are smaller than imports: then there is a trade deficit in the Balance of Trade and the country will need to seek for financing to cover that difference.

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