Question

unfavorable balance of trade 5 example from 9th​

Answer 1

Answer:

(1)- The difference between the value of a country's exports and the value of its imports such that imports exceed exports. An unfavorable balance of trade is also called a trade deficit.

(2)- 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. Favourable exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.

(3)- The term " favorable balance of trade " is used by American. economists, almost without exception, to mean an excess of. commodity exports over commodity imports, and, in turn, an. "unfavorable balance of trade" is used to mean an excess of. commodity imports over commodity exports.

(4)- The trade balance is the net sum of a country's exports and imports of goods without taking into account all financial transfers, investments and other financial components. A country's trade balance is positive (meaning that it registers a surplus) if the value of exports exceeds the value of imports.

(5)- For example, if the United States imported $1 trillion in goods and services last year, but exported only $750 billion in goods and services to other countries, then the United States had a trade balance of negative $250 billion or a $250 billion trade deficit.