Question

what is the difference between favourable and unfavourable trade balance

Answer 1

Favourable trade balance	Unfavourable trade balance
a. Favourable trade balance implies when exports of a country are more than imports, that is the value of exports are more than its value of imports in a particular period of time.	If country's imports are more than its exports, that is the value of imports exceeds value of exports, it amounts to unfavourable balance of trade.
b. . If exports are more than imports it amounts to trade surplus as it leads to inflow of foreign capital.	If imports and more than exports it amounts to trade deficit.