balance of trade

The phrase "balance of trade" refers to the difference in value between a country's imports and exports over a certain period, typically a year. It is a measurement of the economic transactions between a country and the rest of the world. When a country's exports (the value of goods and services it sells to other countries) exceed its imports (the value of goods and services it buys from other countries), it is said to have a positive balance of trade or a trade surplus. Conversely, when a country's imports surpass its exports, it is said to have a negative balance of trade or a trade deficit. The balance of trade is an important indicator of a country's economic health and can impact its currency value, employment, growth, and overall economic stability.