Unfavorable Balance of Trade

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Unfavorable Balance of Trade

The value of a nation's imports in excess of the value of its exports.

Unfavorable Balance of Trade

The difference between the value of a country's exports and the value of its imports such that imports exceed exports. Analysts disagree on the impact, if any, of an unfavorable balance of trade on the economy. Some economists believe that an unfavorable balance of trade, especially if sustained, causes unemployment and lowers GDP growth. Others believe that the balance of trade has little impact, because the more international trade occurs, the more likely it is that foreign companies will invest in the home country, negating any negative effects. An unfavorable balance of trade is also called a trade deficit.
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TAIPEI - Taiwan's unfavorable trade balance with South Korea expanded for the third consecutive year to reach a new high of US$6.
Pakistan has an unfavorable trade balance with Japan, with exports at $200 million and imports at an estimated $400 million.
Thailand and Malaysia may be next, thanks to their unfavorable trade balances and mounting debt worries.