balance of trade


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Related to balance of trade: Balance of Payment

Balance of trade

Net flow of goods (exports minus imports) between two countries.

Balance of Trade

The difference between the value of a country's exports and the value of its imports. If the value of exports exceeds that of imports, a country is said to have a trade surplus, while the opposite case is called a trade deficit. Analysts disagree on the impact, if any, of the balance of trade on the economy. Some economists believe that an overly large trade deficit causes unemployment and lowers GDP growth. Others believe that the balance of trade has little impact, because the more international trade occurs, the more likely it is that foreign companies will invest in the home country, negating any negative effects.

balance of trade

A net figure calculated by subtracting a country's imports from its exports during a specific period. If a country sells more goods and services than it purchases, its balance of trade is said to be positive, that is, exports exceed imports. Such a balance is generally considered to be favorable. Conversely, a negative balance is said to be unfavorable. A country's balance-of-trade position has great impact on its economic activity and on the profits of companies operating within it. See also trade deficit, trade surplus.

Balance of trade.

The difference between the value of a country's imports and exports during a specific period of time is called the balance of trade.

If a country exports more than it imports, it has a surplus, or favorable balance of trade. A trade deficit, or unfavorable balance, occurs when a country imports more than it exports.

balance of trade

see BALANCE OF PAYMENTS.

balance of trade

a statement of a country's trade in GOODS (visibles) with the rest of the world over a particular period of time. The term ‘balance of trade’ specifically excludes trade in services (invisibles) and concentrates on the foreign currency earnings and payments associated with trade in finished manufactures, intermediate products and raw materials, which can be seen and recorded by a country's customs authorities as they cross national boundaries. See BALANCE OF PAYMENTS.
References in periodicals archive ?
The second assumption is that any difference in the price level elasticity of aggregate demand for this paper arises only from either the real balance or interest rate effect, with the corollary being that the price level sensitivity of the balance of trade is assumed equal for aggregate demand curves of different price level elasticities.
4 billion favorable balance of trade with Mexico in 1992 has shifted to an $18 billion American trade deficit in 1996.
The balance of trade in goods has been steadily improving since the recession began at the beginning of the Nineties.
Different authors examine topics such as water resources, food production, foreign aid, the role of the private sector in the economy, problems of balance of trade, Islamic banking, and even market demand for automobiles.
Now we have the largest deficit in balance of trade in the world.
If we were to consider only the balance of trade, American manufacturing is losing the battle," Booth said.
The table showing the turnover and balance of trade indicates the positive trends of upward movement in foreign trade of both the countries for the past ten years.
Croatia runs a negative balance of trade in finished pharmaceuticals and a positive balance in raw materials.
The region is the only one in the country to consistently have a positive balance of trade in exports, a distinction the Chamber is hoping to boost with five-year contract with UK Trade & Investment.
NECC head of Partners, Jo Fryett, said: "The NECC Partners welcomed the opportunity to speak directly to the Minister and highlight what is happening in the North East and the diversity of business and balance of trade.
Two major macroeconomic indicators not taken into account by the National Bank include a high unemployment level and a negative balance of trade.
The decline of the current account deficit was due to decreaseof the balance of trade deficit by EUR 3.