What is Mean by Balance of Trade ?

Balance of Trade

Balance of trade means the difference between the value of total export and the value of total import of a country for a given period of time (generally one year).


Balance of Trade is a component of balance of payment.


Surplus Balance of Trade
When the Total value of export exceed the total value of imports of a country for a given period of time then it is called Surplus Balance of Trade. It means the trade is in favour of a country.This is expected by all the countries.


Deficit Balance of Trade
But When the Total value of import exceed the total value of exports of a country for a given period of time then it is called Deficit Balance of Trade. It means the trade is against of a country.



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