Question

Correct and rewrite the wrong statements. 1) when the value of exports and imports is almost the same it is called favourable balance of Trade

Answer 1

Answer:

A positive trade balance (surplus) is when exports exceed imports.

A negative trade balance (deficit) is when exports are less than imports.

Use the balance of trade to compare a country’s economy to its trading partners.

A trade surplus is harmful only when the government uses protectionism.

A trade deficit can be beneficial to countries that import heavily and simultaneously invest in economic development