Can a nation have a favorable balance of trade?



Yes, a nation can have a favorable balance of trade and an unfavorable balance of payments. This is so because a favorable balance of trade means the exports are more than a country’s imports. In contrast, an unfavorable balance of payment means expenditure is more than the government’s revenue.

Could a country have a Favourable balance of trade?

If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus.

What does it mean to have a favorable balance of trade?

The term “favorable balance of trade” is used by American. economists, almost without exception, to mean an excess of. commodity exports over commodity imports, and, in turn, an. “unfavorable balance of trade” is used to mean an excess of. commodity imports over commodity exports.’

Why do countries prefer to have a favorable balance of trade?





Favorable Trade Balance



Many countries implement trade policies that encourage a trade surplus. These nations prefer to sell more products and receive more capital for their residents, believing this translates into a higher standard of living and a competitive advantage for domestic companies.

How did nations create a favorable balance of trade?

Accordingly, a country was encouraged to export more than it imported since the net outflow of goods would be matched by an inflow of gold. To stimulate a trade surplus, mercantilists counseled tariffs and export subsidies. The tariff discouraged imports, whereas the export subsidy encouraged exports.

Which is a positive balance of trade for a country quizlet?

What is a positive or favourable balance of trade known as (Positive Balance)? This is known as a trade surplus, when exports exceed imports.

Does the balance of trade always balance?

The balance of payments always balances. Goods, services, and resources traded internationally are paid for; thus every movement of products is offset by a balancing movement of money or some other financial asset.

Can a country have a favorable balance of trade with one country and not with another?





Yes, a nation can have a favorable balance of trade and an unfavorable balance of payments.

What is a favorable balance of trade quizlet?

A favorable balance of trade; occurs when the value of a country’s exports exceeds that of its imports. Trade deficit. An unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports.

What is Unfavourable balance of trade?

The difference between the value of imports and the value of exports of a country in a specific period of time is called the balance of trade. When imports are greater than exports, it is known as an unfavourable balance of trade.

What is balance trade in which situation it is Favourable and Unfavourable?

If the value of exports is more than the value of imports it is called favourable balance of trade. 1. If the value of imports is greater than the value of exports it is known as unfavourable balance of trade. 2. Favourable balance of trade is regarded good for the economic development.

How does balance of trade affect the economy?

The balance of trade influences currency exchange rates through its effect on foreign exchange supply and demand. When a country’s trade account does not net to zero—that is, when exports are not equal to imports—there is relatively more supply or demand for a country’s currency.



What is balance of trade answer in one sentence?

A country’s balance of trade is the difference in value, over a period of time, between the goods it imports and the goods it exports. The deficit in Britain’s balance of trade in March rose to more than 2100 million pounds.

When a nation is importing more than it is exporting it has a positive balance of trade?

If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance. As of 2016, about 60 out of 200 countries have a trade surplus.

How is the balance of trade defined quizlet?

Balance of trade. the difference in value between a country’s import and exports.

How would you describe the balance of trade in a country that exports more than it imports quizlet?

A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports.

Could a country have a Favourable balance of trade and an unfavorable balance of payments in the same year?

Answer and Explanation:



Yes, a nation can have a favorable balance of trade and an unfavorable balance of payments. This is so because a favorable balance of trade means the exports are more than a country’s imports.



What might create an unfavorable balance of trade for a country?

If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.

What is a favorable balance of trade quizlet?

A favorable balance of trade; occurs when the value of a country’s exports exceeds that of its imports. Trade deficit. An unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports.

What is balance trade in which situation it is Favourable and Unfavourable?

If the value of exports is more than the value of imports it is called favourable balance of trade. 1. If the value of imports is greater than the value of exports it is known as unfavourable balance of trade. 2. Favourable balance of trade is regarded good for the economic development.

What is Unfavourable balance of trade?

The difference between the value of imports and the value of exports of a country in a specific period of time is called the balance of trade. When imports are greater than exports, it is known as an unfavourable balance of trade.

What is the outcome of an unfavorable balance of trade?

An unfavorable balance of trade is an economic condition where the country imports more products and services than the country exports. This is a condition where the country has less resources or the country is not able to produce products and services which can be traded with other countries.