balance of trade

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Related to U.S. trade deficit: balance of trade, U.S. trade balance

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 parts cost less than the finished car, so GM's imports exceeded its exports, adding to the U.S. trade deficit; yet all the transactions took place within the virtual walls of the same U.S.
As the U.S. trade deficit falls, the share of Gross Domestic Product (GDP) going to consumer spending will contract.
Reasonable concessions from China would both lower the U.S. trade deficit and spread the benefits of economic development more equitably, but such an outcome is unlikely."
The U.S. trade deficits with Japan and Mexico, however, both decreased moderately in April, to $6.4 billion and $3.2 billion, respectively.
The U.S. trade deficit jumped 65% from $164.3 billion in 1998 to $271.3 billion in 1999, and imports increased by about 12% due to a strong domestic economy.
Zhu urged Washington to downplay the issue of the U.S. trade deficit with China.
''The U.S. trade deficit is ballooning again, the U.S.
The U.S. trade deficit with Mexico has grown to $16 billion, despite 36 percent export growth, because imports from Mexico increased almost twice as much.
As the number of trade lobbyists has gone up, the U.S. trade deficit has ballooned and the economic well-being of middle-class America has gone down.
The U.S. trade deficit in 1992 for miscellaneous rubber or plastics products climbed to $1 billion, due largely to rising imports from China and Canada.
In the second half of the 1980s, the budget deficit turned around, interest rates and the dollar fell, the U.S. trade deficit began to narrow, and the world market shares of U.S.