Q.From the following data, calculate the Balance of Trade of a country and state whether it is favourable or unfavourable: Exports = ₹850 crore, Imports = ₹960 crore.

The balance of trade is found by subtracting the value of imports from the value of exports for the period. …

Given: Exports = ₹850 crore; Imports = ₹960 crore.

Formula: Balance of Trade = Value of Exports − Value of Imports.

Solution: Balance of Trade = 850 − 960 = −110, i.e., a deficit of ₹110 crore.

Verification (independent check): Imports − Exports = 960 − 850 = 110, confirming that imports exceed exports by exactly ₹110 crore, consistent with the first calculation of a negative Balance of Trade of the same magnitude. Since imports (₹960 crore) are greater than exports (₹850 crore), the balan …

Alternative check: compute Imports − Exports directly; a positive result of the same magnitude with the sign reversed confirms the first computation and sh …

Students sometimes subtract in the wrong order (Imports − Exports) and then misread the sign, or forget to state in words whether the resulting balance is favourable or unfavourable …