The balance of trade measures the difference in value over a period of time between a country's imports and exports of merchandise. A favorable balance, or trade surplus, occurs when exports exceed imports, while an unfavorable balance, or trade deficit, occurs when imports outweigh exports.
A favorable trade balance occurs when the value of a nation’s exports exceeds the value of its imports, resulting in a surplus.
The trade balance, also known as the balance of trade, measures the difference in value between a country's imports and exports over a specific period. It is a critical indicator of economic health and international competitiveness.
A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade, while a trade surplus occurs when exports exceed imports, leading to a positive balance of trade.
