If the value of imports is more than the value of a country's exports, then it will be called as :

Unfavourable balance of trade

The correct answer is Option (1) → Unfavourable balance of trade

Balance of trade records the volume of goods and services imported as well as exported by a country to other countries. If the value of imports is more than the value of a country’s exports, the country has negative or unfavourable balance of trade. If the value of exports is more than the value of imports, then the country has a positive or favourable balance of trade.