When a nation's exports are greater than its imports,_________

  • A The net foreign trade is zero
  • B A favourable balance of trade exists
  • C A favourable balance of payment exists
  • D An unfavourable balance of trade exists
jamb 2021economics

The correct answer is B. A favourable balance of trade exists

A balance of trade is the difference between the value of a nation’s imports and exports of goods.

A favourable balance of trade, also known as a trade surplus, occurs when the value of exports exceeds the value of imports.

This means that the country earns more foreign currency from selling goods than it spends on buying goods from other countries.

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