What is Favourable Balance of Payments?
Favourable balance of payments happens when a country receives more money from other countries than it pays out. Total receipts from exports (visible and invisible) exceed total payments for imports.
Favourable balance of payments happens when a country receives more money from other countries than it pays out. Total receipts from exports (visible and invisible) exceed total payments for imports.
Exam Success Tips:
✓ Always define favourable balance clearly: receipts exceed payments
✓ Include both visible and invisible items in your explanation
✓ Use Nigerian examples: oil exports, diaspora remittances, foreign reserves
✓ Don’t confuse balance of payments with balance of trade
✓ When explaining, use “because” and “this means” to extend points
✓ Check your English grammar before submitting answer sheet