Explain graphically the difference in types of balances of trade
Answers
Answer:
The difference in types of balances of trade can be defined in 3 ways as mentioned below. (i) When the value of imports is more than the value of exports, it is called 'unfavorable balance of trade. (ii) When the value of exports is more than the value of imports, it is called 'favourable balance of trade.
Answer:
The balance of trade, commercial balance, or net exports is the difference between the monetary value of a nation's exports and imports over a certain time period.[1] Sometimes a distinction is made between a balance of trade for goods versus one for services. The balance of trade measures a flow of exports and imports over a given period of time. The notion of the balance of trade does not mean that exports and imports are "in balance" with each other.