Question

Define the following terms:

(i) Trade

(ii) International Trade

(iii) Favourable Balance of Trade

(iv) Unfavourable Balance of Trade

Answer 1

(i) The exchange of goods among people, states and countries are referred to as a trade.

(ii) Trade between two countries is called international trade.

(iii) When the value of expert exceeds the value of imports, it is called a favourable balance of trade.

(iv) When the value of imports exceeds the value of exports, it is termed as the unfavourable balance of Trade.