Balance of trade

Balance of trade is entry in the balance of payments measuring the difference between the monetary value of merchandise exports and merchandise imports.

Balance of trade is the difference between the dollar value of a nation’s exports and the dollar value of its imports for a stated period of time.

Balance of trade is the difference (expressed in monetary terms) between the amount a country exports and the amount it imports. A nation that exports more than it imports has a trade surplus; one that imports more than it exports has a trade deficit.


Share it:  Cite

More from this Section

  • Loan participation
    Loan participation is the agreement under which a bank will share a large loan with one ...
  • Security
    For networking, security generically describes the set of access controls and permissions ...
  • Exchange ratio
    Exchange ratio is the number of shares of stock in the acquiring firm that stockholders ...
  • Depreciation & Accumulated depreciation
    Depreciation is the process of allocating the cost of an asset to expense over its useful ...
  • Merit rating
    Merit rating refers rate-making method in which class rates are adjusted upward or downward ...