trade gap

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trade gap

A country's trade gap widened as imports exceeded exports.

Definition

Noun: 1. The difference in value between a country's merchandise imports and exports over a period of time: Specifically, the "trade gap" refers to a situation where the value of goods a country imports exceeds the value of goods it exports, resulting in a trade deficit. It is a key component of a nation's balance of trade.

Usage

The term "trade gap" is used in economic and financial contexts to describe and measure the shortfall in a country's trade of physical goods. It is often reported monthly or annually. - It is typically used with verbs like widen, narrow, shrink, reduce, or address. - It is often modified by adjectives indicating size or change, such as growing, record, large, or persistent.

Examples
  • The trade gap widened to $70 billion last month, causing concern among economists.
  • Policymakers are discussing measures to narrow the trade gap.
  • A persistent trade gap can affect a nation's currency value.
Advanced Usage
  • "to widen/expand the trade gap": Describes an increase in the deficit.
    • Increased consumer demand for foreign cars widened the trade gap.
  • "to narrow/close the trade gap": Describes a decrease in the deficit.
    • A boom in agricultural exports helped narrow the trade gap.
Variants and Related Words
  • Trade deficit (n): A more formal synonym for "trade gap."
  • Balance of trade (n): The broader economic term for the difference between exports and imports. A "trade gap" is an unfavorable (negative) balance of trade.
  • Trade surplus (n): The opposite situation, where the value of exports exceeds the value of imports.
Synonyms
  • Trade deficit
  • Negative balance of trade
Antonyms
  • Trade surplus
  • Positive balance of trade
trade gap

A country's trade gap widened as imports exceeded exports.

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