Balance of trade

Definition

The balance of trade is the difference between the value of a country's exports and the value of its imports over a certain period. A positive balance indicates more exports than imports (a trade surplus), while a negative balance indicates more imports than exports (a trade deficit).

Related terms

Trade Deficit:

It occurs when a country's imports exceed its exports during a specific period.

Trade Surplus:

This situation arises when a country's exports are greater than its imports over a certain timeframe.

Exports:

These are goods or services produced in one country and sold to buyers in another country