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

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