Social Science (087) — AI-generated practice question

Balance of Trade is the difference between the value of a country's exports and the value of its imports.

It is said to be unfavourable when the value of imports exceeds the value of exports — meaning the country is spending more on buying goods than it earns by selling them.

Source: International Trade, Chapter 7

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• The definition and condition of unfavourable balance of trade are directly lifted from the passage — use the same phrasing in the exam.
• Both parts of the question carry marks, so define balance of trade and state the condition for it being unfavourable — don't skip either.
• "Favourable" is the opposite (exports > imports); knowing this contrast helps you write the answer confidently.