Q. 175.0( 2 Votes )

Why is favourable Balance of Trade desired for an economy?

Answer :

The difference between export and import gives the balance of trade of a country. If the export quantity exceeds the import quantity, then the trade balance is said to be favourable, and if the import quantity exceeds the export quantity, then it is unfavourable trade balance. Favourable trade balance in a country is desired for an economy as it increases the economic growth rate of the country. More export leads to more incoming of foreign exchange which helps in filling the deficit in the longer run.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Learning Important concepts - Sectors of Indian Economy53 mins
Champ Quiz | Decoding the Economic Sectors52 mins
Let's understand Indian Economy33 mins
Know About SST in NTSE 202038 mins
Quiz | Recalling the National Movement50 mins
NTSE Discussion48 mins
Learn to make the Indian National Flag using Magic of Chemistry28 mins
Nature of Roots of Quadratic Equations51 mins
Quiz on Number of Solutions of an Equation24 mins
Quiz | Criterion of Similarity of Triangle45 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses