What is a favorable trade of balance?

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When the value of imports exceeds the value of exports

When the value of exports exceeds the value of imports

Trade between two countries

Trade between two cities

answer is B.

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Detailed Solution

When the value of exports exceeds the value of imports it is known as favorable trade of balance. Balance of trade, the difference in value over a period of time between a country’s significance and exports of goods and services, generally expressed in the unit of currency of a particular country or profitable union(e.g., bones for the United States, pounds sterling for the United Kingdom, or euros for the European Union). Due to the limited supply of resources on Earth, no nation can thrive without international trade. The parts of trade are export and import. The difference between a country's export and import represents its trade balance. A positive or favorable trade balance is one in which exports are more than imports in value. On the other hand, a trade balance that is unfavorable or negative occurs when imports surpass exports in value.

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