AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(a) This is called an unfavourable balance of trade.
(b) It indicates that the country spends more on imports than it earns from exports, reflecting a weak economic position in international trade.
Source: International Trade, Chapter 7
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This is a 1-mark question split into two tiny parts — keep each part to a phrase or short clause. The textbook directly defines "unfavourable balance of trade" as when the value of imports exceeds exports. Examiners expect that exact term for part (a). For part (b), a one-clause explanation linking it to economic weakness is sufficient — no elaboration needed.