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Favorable Balance of Trade

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Favorable Balance of Trade
The value of a nation's exports in excess of the value of its imports.

Favorable Balance of Trade
The difference between the value of a country's exports and the value of its imports such that the value of exports is greater. Analysts disagree on the impact, if any, of a favorable balance of trade on the economy. Some economists believe that a favorable balance of trade creates employment and increases GDP growth. Others believe that the balance of trade has little impact. A favorable balance of trade is also called a trade surplus. See also: Trade deficit.


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