Question

Choose the correct option.

Statement I: In 2019, China had an unfavourable balance of trade.

Statement II: In 2019, India had a favourable balance of trade.

• A. Both of the statements are correct
• B. Both of the statements are incorrect
• C. Statement I is correct, but statement II is incorrect
• D. Statement I is incorrect, but statement II is correct

Answer 1

The correct option is B Both of the statements are incorrect

When the monetary value of a country's exports is greater than its imports, the country is said to have a favourable balance of trade. While, when the monetary value of exports of a country is lesser than its imports, the country is said to have an unfavourable balance of trade. In 2019, India had an unfavourable balance of trade, whereas China had a favourable balance of trade.