Question

What is meant by balance of trade

Answer 1

The Balance of Trade of a country is the difference between its export and import.

In following situations, it is favourable and unfavourable

(i) When the value of export exceeds thevalue of imports, it is called a favourablebalance of trade.

(ii) On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade.

Answer 2

✨• WHAT IS MEANT BY TRADE?

Answer : The exchange of goods among people, states and countries is referred to as “Trade”.

✨• WHAT ARE THE TWO COMPONENTS OF TRADE?

Answer : “Export” and “Import” are the two components of trade.

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✨✔️✔️HERE IS YOUR ANSWER....

Balance Of Trade of a country is the difference between its exports and imports.
Two forms of balance of trade are :-

• Favourable Balance Of Trade :-
When the value of exports exceeds the value of imports. It is called Favourable balance of trade.

• Unfavorable Balance Of Trade :-
When the value of imports exceeds the value of exports. It is called Unfavorable Balance Of Trade.

✨✔️✔️HOPE IT HELPS YOU...
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