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[[1]]balance of trade is called when the value of imports exceeds the value of exports.

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Detailed Solution

An unfavourable trade balance is called when the value of imports exceeds the value of exports.
When the value of imports exceeds the value of exports, this is referred to as an unfavourable trade balance. An unfavourable trade balance is when a nation imports more goods and services than it exports. It is a situation when the country lacks insufficient resources or cannot generate goods and services that can be traded internationally. It is also known as a trade deficit and can harm the nation's economy over time since it may cause the currency's value to fall due to a significant rise in imports and a decline in exports.

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