Trade Balance

What is Trade Balance also known as?

Balance of Trade

What are the factors that can affect the balance of trade?

Factors are exchange rate movements, relative production costs between trading partners, the availabilty of raw materials, various taxes or restrictions on trade, the availability of adequate foreign exchange or reserves to pay for imports, and the domestic prices of goods that are exported

What is a positive or favourable balance of trade known as (Positive Balance)?

This is known as a trade surplus, when exports exceed imports.

What is Trade Balance?

This is the difference between the value of exports and imports to a specific country's economic output over a set period of time.

What is a negative or unfavourable balance reffered to Negative Balance)?

Trade deficit or a trade gap.