Question

what is the difference between favourable and unfavourable trade balance

Answer 1

The difference between exports and imports is called the balance of trade. ... The balance of tradecan be favourable or unfavourable. If imports are greater than exports, it is an unfavourable balance of trade. If exports exceed imports, it is a favourable balance of trade

Answer 2

.a Favourable trade balance implies when exports of a country are more than imports, that is the value of exports are more than its value of imports in a particular period of time.

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.

b. . favourable exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.

unfavorable If imports and more than exports it amounts to trade deficit.