Question

Define 'balance of trade'. Distinguish between favourable balance of trade and unfavourable balance of trade.​

Answer 1

Answer:

in difference value between the amount that the country buys from other countries(imports)and the amount that it sell to them (export) are called balance of trade

Answer 2

Answer:

It is the difference between the value of exports and imports of goods in a country.

Unfavourable balance of trade happens when the exports decline and imports increase which lead to decline of economic growth.

favourable balance of trade happens when imports decrease and exports increase leading to economic growth.