balance of trade

American  

[bal-uhns uhv treyd] / ˈbæl əns əv ˈtreɪd /

noun

Economics.

1. the difference between the values of the exports and imports of a country, said to be favorable when exports are greater, and unfavorable when imports are greater.

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balance of trade British  

noun

1. Also called: visible balance.  economics the difference in value between total exports and total imports of goods Compare invisible balance

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balance of trade Cultural  

1. That part of the balance of payments relating to goods only (as opposed to services, monetary movements, official reserve transactions, etc.).

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A nation whose imports are worth more than its exports is said to have an unfavorable balance of trade, or to be running a trade deficit.

Etymology

Origin of balance of trade

First recorded in 1660–70

Example Sentences

See Examples For:

balance of trade

In addition to paying tuition, they pay American businesses for food, shelter, transportation, and entertainment while they are here, supporting 400,000 American jobs and creating a double “win” for the balance of trade.

From Slate ● Apr. 24, 2025

India has already slashed tariffs on some US goods, with further cuts expected as the balance of trade is still stacked heavily in favour of Delhi, which enjoys a $45bn trade surplus.

From BBC ● Apr. 21, 2025

Amassing national wealth, in turn, depended on maintaining a favorable balance of trade, a situation in which a country exports goods of greater value than it imports.

From Textbooks ● Dec. 14, 2022

But Dar’s policies have a lot of critics, who say he ensured the rupee remained over-valued and hurt the balance of trade.

From Reuters ● Sep. 28, 2022

It is the founding concept of modern social science: David Hume’s theory of the balance of trade and Adam Smith’s conception of the market depend on the concept of a feedback mechanism.

From "The Invention of Science" by David Wootton

Related Words

• balance of payments
• trade deficit