Trade Imbalance

Trade imbalance occurs when a country's imports (goods and services bought from other countries) and exports (goods and services sold abroad) do not equal each other. If imports are higher than exports, the country has a trade deficit, meaning it spends more on foreign goods than it earns from selling its own. Conversely, if exports exceed imports, the country has a trade surplus. This imbalance affects a nation's economy, influencing factors like jobs, currency value, and economic growth. Managing trade balances is important for maintaining financial stability and supporting sustainable economic development.