Question

What does favourable balance of trade refer to?​

Answer 1

Answer:

if the goods imported exceeds the goods exported then their is a surplus or in other words profit left

for eg

i buy a chocolate of 10 rupees and then i sell it in 20 rupee the profit i have can be used.. if i have to return some money which i lend from someone i can use my profit to pay

similarly in a balance of trade the country which is rich in some kind of resource it would try to import in huge quantity so that it can get a surplus .. this forms a multilateral system and then it can later use that to fill up the deficit

i hope this helps :) ..if it does mark me as brainiest

Answer 2

Answer:

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.'

A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. Trade deficit. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.

Balance of Trade (BOT), also known as trade balance is the total sum of a nation's exports minus the value of its imports. ... A country is said to have a trade imbalance or deficit if its imports are greater than its exports. Imports refer to goods and services a country's people buy from foreign companies.

Explanation:

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