What is one way that a negative trade balance can be converted into a $0 balance of payments? A) The use of import quotas B) The imposition of tariffs C) The negotiation of trade agreements D) The funding of public works projects

Option B, The imposition of tariffs, is the right answer.

Explanation:

A tariff is a kind of economic tool that is used to balance international trade. It is a tax that is imposed over the import or export of goods and services. If a country wants to increase its export then it must remove the tariff from export. If a country wants to decrease its import then it must tariff on import because imposing a tariff on imports will make the import costly. Therefore, a decrease in imports will help to achieve a zero balance of payment.

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