If the value of exports is more than the value of imports it is called favourable balance of trade. 1. If the value of imports is greater than the value of exports it is known as unfavourable balance of trade.
What is the difference between Favourable balance of trade and Unfavourable balance of trade?
If the value of exports is more than the value of imports, it is called favourable balance of trade. If the value of imports is greater than the value of exports it is known as unfavourable balance of trade. 2. Favourable balance of trade is regarded good for the economic development.
What is an Unfavourable balance of payments?
Balance of payments is unfavorable when its payments are more than its receipts. This situation reduces foreign exchange reserves. In this case exports of goods, services and capital receipts are less than import of goods, services and capital receipts are less than import of goods, services and capital payments.
What is favorable and unfavorable balance of trade?
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.
What is known as the Unfavourable balance of trade?
Unfavorable Balance of Trade The difference between the value of a country’s exports and the value of its imports such that imports exceed exports. An unfavorable balance of trade is also called a trade deficit.
What’s the difference between favourable and unfavourable balance of trade?
Distinguish between Favourable balance and Unfavourable balance of trade. 1. When there is an excess of exports over imports, it is called favourable balance of trade. 2. In 1976-77 in India the imports were of value of 5073 crore rupees while exports were of value of 5142 crore rupees. Balance of trade was + 69 crore rupees. 3.
What’s the difference between a favourable and unfavourable bank account?
If a bank account is favourable, it gos to debit side. If the account is unfavourable, it goes to credit side. Favourable balance will be +(dr) in CB and – (dr) in PB whereas unfavourable balance will be -(cr) in CB but +(cr )in PB.
How do you know if a bank balance is favorable or unfavourable?
In the Bank statement if the credits during the year are more than the debits – It is favourable balance. But in Books – Its opposite i.e., if debits are more than credit it is favourable balance. Unfavourable – Opposite to this.
What’s the difference between favourable and unfavourable variances?
For example if variance is found to be 2,500 and is unfavourable then it will be written as (2,500). Whereas favourable variances are reported simply without any “highlighters”
