The Balance Of Trade

Next video:
Loading the player...

The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. A trade surplus occurs when a country sells more than it buys from foreign markets.

You May Also Like

Related Articles
  1. Economics

    How are labor and capital affected by the balance of trade?

  2. Economics

    Sovereign Debt Overview

  3. Economics

    Keynesian Economics

  4. Investing

    Quantitative Easing

  5. Investing

    Explaining Economies Of Scale

  6. Credit & Loans

    Understanding The Debt Ceiling

  7. Forex

    What Causes Drastic Currency Changes?

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!