Question
Distinguish between Favourable balance and Unfavourable balance of trade.
Solution
|
Favourable Balance of Trade |
Unfavourable Balance of Trade |
|
1. When there is an excess of exports over imports, it is called favourable balance of trade. 2. In 1976-77 in India the imports were of value of 5073 crore rupees while exports were of value of 5142 crore rupees. Balance of trade was + 69 crore rupees. 3. It helps to strengthen the economy of a country. |
1. When there is excess of imports over exports, it is called an unfavourable balance of trade. 2. In India in 1982-83 imports were of value 14047 crore rupees while exports were of value of 8637 crore rupees. Balance of trade was - 5410 crore rupees. 3. It creates problems for the economy of a country. |
