favorable trade balance


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Trade patterns are also influenced by subsidiary size, with only the largest subsidiaries associated with global trade patterns, and the largest subsidiaries contributing most heavily to favorable trade balance effects.
Hypothesis 5: Subsidiary size will tend to be positively correlated with a favorable trade balance.
This tends to support Hypothesis 5, but indicates that size may only contribute in a consistent way to a favorable trade balance effect when subsidiaries are very large.
For the above reasons, it was also hypothesized that subsidiary size would be positively related to a favorable trade balance effect.
An example is the widely held view that a favorable trade balance is desirable in its own right.