The balance of trade is the difference between the value of a country's exports and the value of its imports over a given period. A trade surplus occurs when a country exports more than it imports; a trade deficit when it imports more than it exports. It is the largest component of the balance of payments and a key indicator of a country's international economic position.
What Is the Balance of Trade? The balance of trade (also called the trade balance) measures the difference between what a country sells to the rest of the world (exports) and what it buys from the rest of the world (imports) over a specific period, typically a quarter or year. It is one of the most frequently cited indicators of a nation's international economic position and features heavily in discussions of globalization of markets , trade policy, and economic competitiveness. Trade Surplus vs