What is BALANCE OF TRADE? What does BALANCE OF TRADE mean? BALANCE OF TRADE meaning - BALANCE OF TRADE definition - BALANCE OF TRADE explanation.
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The commercial balance or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain period.
If a country exports a greater value than it imports, it is called a trade surplus, positive balance, or a "favourable balance", and conversely, if a country imports a greater value than it exports, it is called a trade deficit, negative balance, "unfavorable balance", or, informally, a "trade gap".
Sometimes a distinction is made between a balance of trade for goods vs one for services.
The balance of trade forms part of the current account, which includes other transactions such as income from the net international investment position as well as international aid. If t...