ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The relationship of visible trade exports to imports is reflected in a country’s balance of trade or visible balance. A surplus in the balance of trade occurs when exports exceed imports and a deficit occurs when imports are greater than exports.

Detailed explanation-2: -If a country exports a greater value than it imports, it has a trade surplus or positive trade balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative trade balance.

Detailed explanation-3: -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-4: -Balance of Trade: Favorable vs. A favorable balance of trade, also known as a trade surplus, occurs when a country exports more goods than it imports.

Detailed explanation-5: -Visible trade, in economics, exchange of physically tangible goods between countries, involving the export, import, and re-export of goods at various stages of production. It is distinguished from invisible trade, which involves the export and import of physically intangible items such as services.