Question

distinguish between favourable and unfavourable balance of trade minimum three points​

Answer 1

Answer:

Favourable trade balance implies when exports of a country are more than imports, that is the value of exports are more than its value of imports in a particular period of time.

unfavorable If country's imports are more than its exports, that is the value of imports exceeds value of exports, it amounts to unfavourable balance of trade.

b. . favourable exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.

unfavorable If imports and more than exports it amounts to trade deficit.