Which of the following is a situation of adverse balance of trade?

Correct option is A

An adverse balance of trade (also known as a trade deficit) occurs when a country imports more goods and services than it exports. This results in a negative balance in the trade account.
Information Booster
1. Balance of trade is the difference between a country's exports and imports of goods and services.
2. An adverse trade balance is often associated with a trade deficit, where imports exceed exports.
3. A favorable trade balance occurs when exports exceed imports, leading to a surplus.
Additional Information
· Option (b) Incorrect: This would result in a favorable balance of trade, not adverse.
· Option (c) Incorrect: This would result in balanced trade.
· Option (d) Incorrect: "Export Surplus" implies a favorable balance of trade, not adverse.