If a nation has an unfavorable balance of trade,it also has an unfavorable balance of payments.

Question

Quizplus · Accepted Answer

An unfavorable balance of trade, which means a country imports more goods than it exports, does not automatically result in an unfavorable balance of payments. The balance of payments includes not only the trade balance but also other financial flows, such as foreign investment, loans, and remittances, which can offset a trade deficit.

If a Nation Has an Unfavorable Balance of Trade,it Also