What is balance of trade low does it become favourable or unfavourable

1.	What is balance of trade low does it become favourable or unfavourable? Explain with example
Answer» (a) Balance of trade records the volume of good and services imported as well as exported by a country to other countries. (b) Favourable/positive balance of trade: when the value of export is more than that of imports for a country then that country has a positive balance of trade. (c) Unfavourable/Negative balance of trade means a country spends more on buying goods (imports) that it earns by selling (exports) to other countries-leading to exhaustion of its financial reserves.

What is balance of trade low does it become favourable or unfavourable? Explain with example

Answer»

(a) Balance of trade records the volume of good and services imported as well as exported by a country to other countries.

(b) Favourable/positive balance of trade: when the value of export is more than that of imports for a country then that country has a positive balance of trade.

(c) Unfavourable/Negative balance of trade means a country spends more on buying goods (imports) that it earns by selling (exports) to other countries-leading to exhaustion of its financial reserves.

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What is balance of trade low does it become favourable or unfavourable? Explain with example

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