Question

write answer in short explain the difference in types of balances of trade​

Answer 1

Answer:

The difference in types of balances of trade can be defined in 3 ways as mentioned below. (i) When the value of imports is more than the value of exports, it is called 'unfavorable balance of trade. (ii) When the value of exports is more than the value of imports, it is called 'favourable balance of trade.Favourable Balance of Trade: The situation, wherein country's exports exceed imports is a situation of favourable or surplus balance of trade.

Unfavourable/Deficit Balance of Trade: ADVERTISEMENTS: ...

Equilibrium in Balance of Trade: ADVERTISEMENTS:Answer: While importing and exporting for goods there are two situations that arise: Balance of Trade deficit: when the value of imports surpasses the total value of exports within a year. Balance of Trade surplus: this happens when the value of exports is more than the value of total imports of the country in a year.