the balance of trade

The phrase "the balance of trade" refers to the difference between a country's total value of exports and its total value of imports during a specific period, usually a year. It indicates the relationship between a nation's exports and imports of goods and services, providing insight into the economic health and competitiveness of a country's international trade. A positive balance of trade (surplus) occurs when a country's exports exceed its imports, indicating that it is selling more goods abroad than it is purchasing from foreign markets. Conversely, a negative balance of trade (deficit) suggests that a country imports more than it exports, indicating an excess of foreign goods being bought compared to domestically-produced goods being sold overseas.