Question

balance of trade can be favourable or unfavourable.discuss.

Answer 1

There are two answers.The balance of trade can be either favourable or unfavourable.This can be explained as follows :

(i) If exports are more than imports, then the balance of trade is favourable.

(ii) If imports are more than exports, then the balance of trade is unfavourable.

(iii) The balance of trade also depends upon the profit or loss gained by the traders.

Answer 2

✨• WHAT IS MEANT BY TRADE?

Answer : The exchange of goods among people, states and countries is referred to as “Trade”.

✨• WHAT ARE THE TWO COMPONENTS OF TRADE?

Answer : “Export” and “Import” are the two components of trade.

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✨✔️✔️HERE IS YOUR ANSWER....

Balance Of Trade of a country is the difference between its exports and imports.

• Favourable Balance Of Trade :-
When the value of exports exceeds the value of imports. It is called Favourable balance of trade.

• Unfavorable Balance Of Trade :-
When the value of imports exceeds the value of exports. It is called Unfavorable Balance Of Trade.

✨✔️✔️HOPE IT HELPS YOU...
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