An unfavorable balance of trade for a country mean that her
An unfavorable balance of trade for a country mean that her
- A) Exports exceeds import
- B) Visible imports exceeds visible exports
- C) Invisible export exceeds visible imports
- D) Import & exports are equal
Correct Answer: B) Visible imports exceeds visible exports
Explanation
This question is asking what an unfavorable balance of trade means for a country. The options are A) exports exceed imports, B) visible imports exceed visible exports (correct), C) invisible exports exceed visible imports, and D) imports and exports are equal.An unfavorable balance of trade occurs when a country imports more goods and services than it exports. This means that the country is spending more money on imports than it is earning from exports. In this question, option B is the correct answer because it states that visible imports (meaning physical goods) exceed visible exports (meaning physical goods).
An unfavorable balance of trade can have negative effects on a country's economy because it means that the country is not able to produce enough goods to meet its needs, and must rely on other countries to supply them. This can lead to a trade deficit and an increase in the country's debt. In contrast, a favorable balance of trade occurs when a country exports more goods and services than it imports. This means that the country is earning more money from exports than it is spending on imports, which can have a positive effect on the economy.
To learn more about this topic, please read the relevant sections of your Commerce textbook.