(a) Balance of trade records the volume of good and services imported as well as exported by a country to other countries.
(b) Favourable/positive balance of trade: when the value of export is more than that of imports for a country then that country has a positive balance of trade.
(c) Unfavourable/Negative balance of trade means a country spends more on buying goods (imports) that it earns by selling (exports) to other countries-leading to exhaustion of its financial reserves.
