A ________ balance of trade is one in which the value of domestic goods exported exceeds the value of foreign goods imported.

Question

Question

This question was previously asked in

SSC GD Constable (2022) Official Paper (Held On : 23 Jan 2023 Shift 4)

Answer 1

The correct answer is favorable.

Key Points

Favorable balance of trade:-
- A favorable balance of trade is one in which the value of domestic goods exported exceeds the value of foreign goods imported. This is also known as a trade surplus.
- A favorable balance of trade is generally seen as a sign of economic strength, as it means that the country is earning more from its exports than it is spending on its imports.
- A trade surplus can have a number of benefits for a country, including:
  - Increased economic growth: When a country exports more goods than it imports, it is essentially injecting more money into its economy. This can lead to job creation and higher wages.
  - A stronger currency: When a country has a trade surplus, the demand for its currency increases. This can lead to a stronger currency, which can make imports cheaper and exports more competitive.
  - Increased investment: A trade surplus can attract foreign investment, as investors are more likely to invest in countries with strong economies.