The-definition.com

Definition

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

  • Dealers
    Dealers means people who link buyers with sellers by buying and selling securities at ...
  • Ahead of itself
    Ahead of itself is an in context of general equities, refers to equities that are overbought ...
  • Basic (lifeline) banking
    Basic (lifeline) banking is the low-cost deposits and other services that are designed ...
  • Liquidity Risk
    Liquidity means the ability of a firm to honor its financial obligations. Therefore the ...
  • Federal Reserve System (the Fed)
    Federal Reserve System (the Fed) is the central banking authority responsible ...