A nation has an unfavorable balance of trade when:

A) it has a surplus in its balance of payments.
B) it has a deficit in its balance of payments.
C) the value of its imports of goods is greater than the value of its exports of goods.
D) its current account is in surplus and its capital account is in deficit.
E) it has high tariffs.

Unfavorable Balance

A situation where a country imports more than it exports, resulting in a trade deficit.

Balance of Trade

The difference in value between a country's imports and exports over a given period, indicating trade surplus or deficit.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, often used to protect domestic industries from foreign competition.