Balance Of Trade

Balance of trade is defined as the difference between the value of a nation’s imports and exports over a defined period of time. A country is considered to have a trade deficit if the value of the goods it imports exceeds the value of the goods it exports. A country has a trade surplus when the value of its exports exceeds the value of its imports. A country’s balance of trade is a metric used to quantify the relative strength of that country’s economy.

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