Unfavorable Balance of Trade

(redirected from Unfavorable Trade Balances)

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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Thailand and Malaysia may be next, thanks to their unfavorable trade balances and mounting debt worries.
Proposed by President Nixon in his 1973 budget, ETIP sought to increase the nation's application of technological invention and innovation to such questions as productivity, unemployment, pollution, energy conservation and unfavorable trade balances.