AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
A favourable balance of trade is when the value of a country's exports exceeds the value of its imports, resulting in a trade surplus.
Source: International Trade, Chapter 7
---
The passage directly defines this term: "When the value of export exceeds the value of imports, it is called a favourable balance of trade." For 1 mark, simply state this definition clearly in one line. Avoid writing about unfavourable balance of trade — that is not asked.