Question

Explain the difference in types of balances of trade create a flow chart showing the types of trade
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Answer 1

Answer:

Favourable Balance of Trade:

The situation, wherein country’s exports exceed imports is a situation of favourable or surplus balance of trade.

2. Unfavourable/Deficit Balance of Trade:

ADVERTISEMENTS:

Excess of total value of goods, imported over the total value of goods exported is termed as unfavourable or adverse or deficit balance of trade.

It may also be expressed as under:

3. Equilibrium in Balance of Trade:

ADVERTISEMENTS:

Equality between the total value of goods exported and total value of goods imported is termed as equilibrium in balance of trade.