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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Note 26 Cash and Cash Equivalents of the report states that at group level the favorable balances classified under current assets total Rs 10.7 billion (Rs 11.7 billion 2018) and at group level unfavorable balances classified under current liabilities total Rs 35.6 billion (Rs 18.5 billion 2018).
That Political Economy, therefore, which busies itself about capital and labor, supply and demand, interest and rents, favorable and unfavorable balances of trade; but leaves out of account the element of a wide-spread mental development, is nought but stupendous folly.