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Glossary Term: BALANCE OF TRADE

Definition(s) for BALANCE OF TRADE:


1. ) The difference between the value of a country's imports and its exports during a specific time period. If a country sells more goods and services than its purchases, its balance of trade is said to be positive, that is exports exceed imports. This is considered to be favorable. Conversely, a negative balance is said to be unfavorable.

2. ) That part of a nation's balance of payments dealing with imports and exports, which is trade in goods and services, over a given period. If exports of goods exceed imports, the trade balance is said to be favorable; if imports exceed exports, the trade balance if said to be unfavorable.

3. ) A country's merchandise exports minus its merchandise trade balance



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