A country imports more than it exports — this is called:

**The reasoning** When a country's **imports** (what it buys from other countries) **exceed its exports** (what it sells to other countries), it means more money is flowing OUT than coming IN. This gap is called a **trade deficit** — think of "deficit" like a shortage or debt in trade. Imagine Nigeria buying ₦500 billion worth of goods from China but only selling ₦300 billion worth of crude oil back. That ₦200 billion difference? That's a trade deficit. **Why the wrong options tempt you** - **A (Trade surplus)** is the opposite — when you export MORE than you import (money flowing in > money flowing out). The word "surplus" means extra, not shortage. - **C (Balance of payment)** is the broader record of ALL money flowing in and out of a country (including investments, loans, aid) — not just trade. - **D (Free trade)** means trading without heavy taxes or restrictions — it's a *policy*, not a measurement of import/export levels. **Quick takeaway** **Deficit = shortage.** If imports are bigger than exports, you have a trade *deficit* (shortage in trade balance).