balance of trade
Definition of balance of trade
balance of trade (usually uncountable; plural balances of trade)
- (economics, trade) The difference between the monetary value of exports and imports in an economy over a certain period of time.
The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports. A favourable balance of trade is known as a trade surplus and consists of exporting more than is imported; an unfavourable balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance.
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