An unfavourable balance of trade occurs when the value of:
A)imports equals the value of exports.
B)cash inflows are equal to the value of cash outflows.
C)exports exceed the value of imports.
D)imports exceeds the value of exports.

Question

Quizplus · Accepted Answer

An unfavorable balance of trade occurs when the value of imports exceeds the value of exports. This means that the country is importing more goods and services than it is exporting, resulting in a net outflow of currency. This can have negative effects on the economy, such as a decline in the value of the country's currency and decreased economic growth.

An Unfavourable Balance of Trade Occurs When the Value Of