.

BY-
OMPRAKASH B N & SACHIN M M
 INTRODUCTION
• BALANCE OF TRADE IS NOTHING BUT EQUAL
IMPORTS AND EXPORTS DONE.EQUAL OR
BALANCE OF IMPORTS AND EXPORTS IS KNOW AS
BALANCE OF TRADE.
• WHEN EXPORT IS MORE THAN IMPORT OR
IMPORT IS MORE THAN EXPORT THEN THAT
COUNTRY WILL NOT BE HAVING GOOD
ECONOMIC CONDITION.
• FAVOURABLE BALANCE OF TRADE INDICATES THE
GOOD ECONOMIC CONDITION OF THE COUNTRY.
INTRODUCTION
.
 FACTORS AFFECTING
BALANCE OF TRADE
• COST OF PRODUCTION
• COST AND AVAILABILITY OF RAW MATERIAL
• EXCHANGE RATE MOVEMENTS
• NON-TARIFF BARRIERS SUCH AS
ENVIRONMENT ,HEALTH OR SAFETY
STANDARDS.
 IMPORTANCE OF
BALANCE OF TRADE
• COUNTRY’S
COMPETENCE LEVEL
IN GLOBAL MARKET.
• HEALTH OF
ECONOMY AND RELATIONSHIP WITH OTHER
COUNTRIES.
• PHYSICAL AND INTANGIABLE GOODS.
 CONCLUSION
• 0

•BALANCE OF TRADE USUALLY DIFFERS ACROSS BUSINESS CYCLE.

•WHERE EXPORTS ARE MORE THAN IMPORTS,THERE WILL BE
A IMPROVEMENT IN BALANCE OF TRADE
•