Question
Explain the difference in types of balances of trade.
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Answer
The difference between the import and export values of a country in a specific period is called balance of trade.
The different types of balance of trade are:
The different types of balance of trade are:
- Unfavourable Balance of Trade: When the value of imports is more than the value of exports, it is called ‘Unfavourable Balance of Trade.’
- Favourable Balance of Trade: When the value of exports is more than the value of imports, it is called ‘Favourable Balance of Trade.’
- Balanced Balance of Trade: When the value of exports and imports is almost the same, it is called ‘Balanced Balance of Trade.’
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