trade balance

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trade balance

A country's trade balance improves when it exports more goods than it imports.

Definition

Noun: 1. The difference in value between a country's total exports and total imports of goods over a specific period: It is a key component of a nation's balance of payments. A positive trade balance (surplus) occurs when exports exceed imports; a negative trade balance (deficit) occurs when imports exceed exports.

Usage

The term "trade balance" is used in economics, finance, and policy discussions to measure a country's international trade in tangible goods. It is often analyzed monthly, quarterly, or annually. - It is typically modified by adjectives like favorable, positive, unfavorable, negative, or by the terms surplus and deficit. - It is commonly discussed in relation to economic policy, currency valuation, and global competitiveness.

Examples
  • The government reported a trade balance surplus of $5 billion last quarter, driven by strong automotive exports.
  • Economists are concerned about the growing trade balance deficit, as imports of consumer electronics continue to rise.
  • A country's trade balance is a crucial indicator of its economic health in the global market.
Advanced Usage
  • "to improve/deteriorate the trade balance": Refers to policies or conditions that lead to a more favorable (smaller deficit or larger surplus) or less favorable trade balance.
    • The devaluation of the currency was intended to improve the nation's trade balance by making exports cheaper.
  • "trade balance figures/data": Refers to the specific statistical measurements.
    • The latest trade balance data will be released by the commerce department on Friday.
Variants and Related Words
  • Balance of trade: A synonymous term used interchangeably with "trade balance."
  • Trade surplus (n.): The amount by which the value of exports exceeds the value of imports.
  • Trade deficit (n.): The amount by which the value of imports exceeds the value of exports.
  • Merchandise trade balance: A more precise term specifying that the calculation is for goods, not services.
Synonyms
  • Balance of trade
  • Net exports (in a specific economic accounting context)
Related Terms and Concepts
  • Current account: A broader measure that includes the trade balance plus net income from abroad and net current transfers.
  • Balance of payments: A complete record of all economic transactions between a country and the rest of the world, including the current account and the capital account.
  • Visible trade: Another term for trade in merchandise goods, as opposed to "invisible trade" (services).
trade balance

A country's trade balance improves when it exports more goods than it imports.

Noun
  1. the difference in value over a period of time of a country's imports and exports of merchandise
    • a nation's balance of trade is favorable when its exports exceed its imports