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WAEC Commerce 1995 Question 23

Question 23

Foreign Trade

When the balance of trade is unfavourable which of the following conditions prevails?

  1. A.Exports exceed imports
  2. B.Imports exceed exports
  3. C.Customs duty is high
  4. D.Invisible exports exceed visible imports
  5. E.The value of money falls
Show the answer and explanation

Answer: B (Imports exceed exports)

Explanation

An unfavourable balance of trade means visible imports are worth more than visible exports.