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Class 10 > Learn Social Studies > What is Balance of Trade? In which situations is it...
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What is Balance of Trade? In which situations is it favourable and unfavourable?

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Difference between imports and exports is called the balance of trade. The trade is called favourable if exports exceed imports. The trade is unfavorable if imports exceed exports.
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Difference between imports and exports is called the balance of trade. The trade is called favourable if exports exceed imports. The trade is unfavorable if imports exceed exports.
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Teacher

Difference between imports and exports is called the balance of trade. The trade is called favourable if exports exceed imports. The trade is unfavorable if imports exceed exports.
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Teacher

Difference between imports and exports is called the balance of trade. The trade is called favourable if exports exceed imports. The trade is unfavorable if imports exceed exports.
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Teacher

Difference between imports and exports is called the balance of trade. The trade is called favourable if exports exceed imports. The trade is unfavorable if imports exceed exports.
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When exports are greater than imports, that's a trade surplus. Most nations view that as a favorable trade balance. The opposite, when the value of imports outweighs the value of exports, is a trade deficit. Countries usually regard that as an unfavorable trade balance. The Balance of Trade of a...
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When exports are greater than imports, that's a trade surplus. Most nations view that as a favorable trade balance. The opposite, when the value of imports outweighs the value of exports, is a trade deficit. Countries usually regard that as an unfavorable trade balance.

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

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The balance of trade compares the value of a country's exports of goods and services against its imports. When exports are greater than imports, that's a trade surplus. Most nations view that as a favorable trade balance. The opposite, when the value of imports outweighs the value of exports, is a trade...
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The balance of trade compares the value of a country's exports of goods and services against its imports. When exports are greater than imports, that's a trade surplus. Most nations view that as a favorable trade balance. The opposite, when the value of imports outweighs the value of exports, is a trade deficit. Countries usually regard that as an unfavorable trade balance. 

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