Trade Balance

Trade balance refers to the difference between the value of a country's exports (goods and services sold abroad) and its imports (goods and services bought from other countries). If exports exceed imports, the country has a trade surplus; if imports exceed exports, it has a trade deficit. A positive trade balance indicates economic strength and the ability to sell more than it buys, while a negative balance may suggest reliance on foreign goods. The trade balance is an important indicator of a country's economic health and its competitiveness in the global market.