Balance of Trade

The Balance of Trade (BOT) measures the difference between a country's exports and imports of goods and services over a specific period. If a country exports more than it imports, it has a trade surplus; if it imports more than it exports, it has a trade deficit. A positive BOT can indicate a strong economy, while a negative one may suggest reliance on foreign goods. The balance is important for understanding economic health, influencing currency value, and shaping trade policies. Overall, it reflects how well a country's economy is performing in the global market.