A favorable balance of trade occurs when the value of exports is greater than imports, and the trade balance of a nation is positive. In contrast, if imports are greater than exports, a country's trade balance is negative or shows a deficit.
Two possibilities can occur while importing and exporting goods: When imports are greater than exports combined over a year, there is a balance of trade imbalance. When a country's entire annual exports exceed its total annual imports, the balance of trade is in excess.
The phrase "favorable balance of trade" is nearly universally used by American economists to refer to an excess of commodity exports over commodity imports, and the converse is true for "unfavorable balance of trade," which is used to refer to an excess of commodity imports over commodity exports.
Learn more about Balance of Trade here:
https://brainly.com/question/7643957
#SPJ6
