What is meant by balance of trade?
The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time. It is the relationship between a nation’s imports and exports A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative 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.
