what is the difference between favourable and unfavourable trade balance - Social Science - Life Lines of National Economy

Question

what is the difference between favourable and unfavourable trade
balance

Charu · Accepted Answer

Favourable
trade balance
Unfavourable trade balance

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
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

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

If imports and more than exports it amounts to trade
deficit

Favourable trade balance	Unfavourable trade balance
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.	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. . If exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.	If imports and more than exports it amounts to trade deficit.