Balance of trade

Definition

The balance of trade is the difference between the value of a country's exports and imports over a certain period. A positive balance signifies that a country exports more than it imports, while a negative balance indicates higher imports than exports.

Related terms

Trade Surplus: A situation where a country's exports exceed its imports during a specific time period.

Trade Deficit: Occurs when a country's imports are greater in value than its exports.

Bretton Woods Institutions: The International Monetary Fund (IMF) and World Bank, established post-World War II to regulate international monetary policies and aid in economic development