A favourable balance of trade occurs when the value of:
A)imports equals the value of exports.
B)the dollar is greater than the value of the euro.
C)cash inflows equal the value of the cash outflows.
D)imports is less than the value of exports.

Question

Quizplus · Accepted Answer

A favourable balance of trade occurs when the value of imports is less than the value of exports, meaning that the country is earning more from selling goods and services to other countries than it is spending on buying goods and services from other countries. This results in a surplus of funds, which is beneficial for a country's economy. Options A, B, and C do not accurately describe a favourable balance of trade.

A Favourable Balance of Trade Occurs When the Value Of