BALANCE OF TRADE - BOT

The difference between imports and exports of a country. The balance of trade is the largest part of the balance of payments of a country. Debit items include domestic investments abroad, domestic spending abroad, foreign aid, and imports. Credit items include foreign investments in the domestic economy, foreign spending in the domestic economy, and exports. A country will acquire a trade deficit if the imports exceeds its exports; a trade surplus will arise if the opposite scenario happens.

Also called as "international trade balance" or simply "trade balance."

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