Balance of Trade
18 January 2010 by bbu09 Add a comment
Topics: BeaBu Glossary > B
Tags: export, import, international trade, macroeconomics, trade balance
Balance of trade definition and calculation
Balance of trade is a measure of international trade and an important macroeconomic indicator. It is the net flow of goods between a country and other countries, calculated by subtracting imports from exports.
A more frequent expression with equivalent meaning is trade balance.
Balance of trade interpretation
When the balance of trade is positive, it means that the country exports more goods than it imports and we say that the country is a net exporter. Conversely, a net importer has a negative balance of trade.
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Topics: BeaBu Glossary > BTags: export, import, international trade, macroeconomics, trade balance