Question 12 of 16
Q.What do you mean by Balance of Trade ?
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2024Subjective· 2mImportance★★★★★
75% · 12/16 Questions
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Start your 14-day free trial to unlock the full solution →Balance of trade (BOT) is the difference between the money value of a country's visible (merchandise) exports and imports over a period; a surplus is favourable, a deficit is unfavourable.
In the Tamil Nadu HSC Commerce syllabus, the balance of trade deals only with visible items — the physical goods that are exported and imported. It does not include invisible items such as services, which are counted in the balance of payments.
- Meaning: BOT = value of goods exported − value of goods imported during a given year.
- Favourable (surplus) balance: when the value of exports is greater than the value of imports. …
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