Trade Balances

A trade balance measures the difference between the value of a country's exports (goods sold abroad) and imports (goods purchased from other countries). If exports exceed imports, a country has a trade surplus, indicating it sells more than it buys. Conversely, if imports surpass exports, there's a trade deficit, suggesting a country spends more on foreign goods than it earns from selling its own. Trade balances can impact a nation's economy, influencing currency value, employment, and overall economic health. Understanding trade balances helps assess a country's economic strengths and weaknesses in the global market.