BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.

Detailed explanation-2: -If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative.

Detailed explanation-3: -If the value of exports exceeds the value of imports, it is said that there is a trade surplus; if imports are greater than exports, the country has a trade deficit.

Detailed explanation-4: -A trade surplus occurs when an economy’s exports are more than its imports. As a result, the country’s currency inflow from international markets rises, bolstering the regional economy in the first situation. On the other hand, a trade deficit occurs when an economy’s import value exceeds the value of its exports.

Detailed explanation-5: -A country that imports more goods and services than it exports in terms of value has a trade deficit while a country that exports more goods and services than it imports has a trade surplus.