When the balance of trade is unfavourable which of the following conditions prevails?

Assessment: WAEC SSCE - Commerce - 1995 (Objective) Subject: Commerce

Question 1 Report

When the balance of trade is unfavourable which of the following conditions prevails?
Answer Details
When the balance of trade is unfavorable, it means that a country's imports are exceeding its exports. This situation leads to a trade deficit, which means that the country is buying more goods and services from other countries than it is selling to them. As a result, the country is spending more money on imports than it is earning from exports. The options provided are: - Exports exceed imports - Imports exceed exports - Customs duty is high - Invisible exports exceed visible imports - The value of money falls Based on the definition provided, we can conclude that the correct answer is "Imports exceed exports."

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