Define balance of trade distinguish between favourable balance of trade and unfavourable balance of trade
Answers
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 :- The balance of trade of a country is the difference between it's 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.
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Answer:
balance of trade, the difference in value over a period of time between a country’s imports and exports of goods and services, usually expressed in the unit of currency of a particular country or economic union.
Explanation:
The balance of trade is the value of a country's exports minus its imports. It's the biggest component of the balance of payments that measures all international transactions. It's easy to measure since all goods and many services pass through the customs office.
The trade balance is also the biggest part of the current account. It measures a country's net income earned on international assets. It's the trade balance plus any other payments across borders.
The difference between export and import is known as balance of trade.Favourable balance of tradeUnfavourable balance of trade1. If the value of exports is more than the value of imports it is called favourable balance of trade.1. If the value of imports is greater than the value of exports it is known as unfavourable balance of trade.2. Favourable balance of trade is regarded good for the economic development.2. Unfavourable balance of trade is seen harmful for the domestic economy.
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