balance of trade

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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 ?
Such a combination of shocks would lead not only to a maximum income effect on the U.S. trade balance lowering U.S.
Thus, fiscal policy appears to have a significant role to play in U.S. trade balance adjustment.
Figure 1 shows U.S. trade balances in goods and in services by month for 2007-2010, and to date for 2011.
Zrust pointed out that, in 2001, the aerospace industry was the largest positive net contributor to the U.S. trade balance, producing an industry trade surplus of almost $27 billion.
Their logic seems to be that the U.S. trade balance, which has been in considerable deficit lately, "should" move toward zero, or surplus, and that dollar depreciation is a necessary part of this process.
Critics contend that NAFTA will worsen the U.S. trade balance because additional investment in Mexico, coupled with the elimination of tariffs, will increase U.S.
These estimates imply that equal growth in the United States and abroad automatically will lead to a worsening in the U.S. trade balance. Some authors have suggested, however, that the high U.S.
comparative advantage in producing certain kinds of services and the same relative price and income movements that have led to continued improvements in the U.S. trade balance. In line with the growing importance of services in U.S.
In other words, these 2,300 companies contributed a positive $17 billion to the U.S. trade balance in one year.
merchandise imports rose 23%, and the U.S. trade balance rose 26%, from -$504 billion in 2009 to -$635 billion in 2010.
Deficit of the U.S. trade balance grew in March to 48.2 bn USD (growth to 47 bn USD was expected).