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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However, around 10 regions registered an unfavorable trade balance during the third quarter of 2017.
Pakistan's external account has come under pressure due to an unfavorable trade balance during this fiscal year.
This shows that there is huge unfavorable trade balance between two countries.
In respect of Trade relations between China and Sri Lanka, in 2010 the total trade turnover between two countries stood at US$ 1330 million in which Sri Lanka's export to China represented US$ 89 millions and Sri Lanka's imports from China stood at US$1241 millions making an unfavorable trade balance of US$1152 million for Sri Lanka.
The 10 countries with the highest amount of Unfavorable trade balance totaled $1,408 billion or 98.
Pakistan has an unfavorable trade balance with Japan, with exports at $200 million and imports at an estimated $400 million.
Ten regions, on the other hand, reported unfavorable trade balances during the third quarter of the year as inflows exceed outflows.
Thailand and Malaysia may be next, thanks to their unfavorable trade balances and mounting debt worries.