balance of trade

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Related to Net exports: national income

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 results of the estimation of the long-term relationship between the variables of ARDL model show that the proportion of world prices to domestic prices and the exchange rate at 5%, production variable at 1% and the net exports variable in at 10%, have a significant effect.
As before, we assume for convenience that net exports is zero, as shown by [E.sub.0'] in Panel B.
This article focuses on the development of R&D capacity, net exports, and profits of China's furniture industry as well as on their relationship by drawing upon the findings of Dai and Yu (2010) for the model of pre-export R&D capacity, productivity, and exports and upon the characteristics of the dynamic path model on technology and trade put forward by Virasa and Tang (1998).
Saarc has low per capita income and ranks below its counterpart in human development index but its net exports show comparatively good trends.
We are revising our 2011 GDP growth slightly upwards to 2.3%, the principal reason for the shift being stronger net exports driven by expansion in Germany.
"The upswing is widely based on strong growth in the industry, building and construction, commodity trading and net exports. Moreover, the results from the regional network of Norway's central bank show that service consumption has developed positively, which implies upside risk for our estimates," Danske Markets economists, who forecast GDP growth of 1.0% sequentially in the third quarter, said in a note.
How does the presence of significant processing trade change the pattern for net exports to respond to the real exchange rate?
Real GDP and Components, 2009:Q4 Advance Estimate Annualized percent change, last: Quarterly change Quarter Four quarters (billions of 2000$) Real GDP 182.0 5.7 0.1 Personal consumption 45.9 2.0 1.1 Durables -2.4 -0.9 4.0 Nondurables 21.3 4.3 1.4 Services 25.8 1.7 0.6 Business fixed 9.1 2.9 -14.6 investment Equipment 27.9 13.3 -8.7 Structures -15.6 -15.4 -24.7 Residential 5.0 5.7 -12.1 investment Government spending -1.1 -0.2 1.6 National defense -6.2 -3.5 3.1 Net exports 16.3 -- -- Exports 62.8 18.1 -1.7 Imports 46.5 10.5 -7.7 Change in private -33.5 -- -- inventories Source: Bureau of Economic Analysis.
It slowed in the fourth quarter of 2007 and in the first quarter of 2008 as the contribution of net exports declined.
And UK financial sector net exports recovered in 2006 to reach a record pounds 24.4 billion, a quarter up on 2005's pounds 19.3 billion, according to International Financial Services London.
As a result, North American net exports will continue to grow and are being forecast to exceed 23 million tons by 2012.
If that doesn't work--and the extent of overinvestment and inefficient investment means it cannot be guaranteed to work--then either or both of increased government investment and of even bigger net exports will be necessary for a soft landing.