A ____________ balance of trade is one in which the value of domestic goods exported exceeds the value of foreign goods imported.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. favourable.
When the value of goods exported from within the country is greater than the value of goods imported from outside, the trade balance is favourable.
- When a nation exports more items than it imports, it creates a trade surplus, sometimes referred to as a favourable balance of trade.
- This is usually regarded as an indication of a strong economy since it indicates that the nation is making more money from exports than it is spending on imports.