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

The balance of trade does not actually measure whether a country is “winning” or “losing.”

From Washington Post

And the United States became a huge net importer of oil, which meant its balance of trade and consumers suffered during periods of high prices.

From Washington Post

The deficit with China is smaller not because Trump’s policies haven’t so much altered the balance of trade as shrunk the volume of trade.

From Salon

Perhaps most notably for Mr. Trump, who views America’s trade deficit as a measure of economic success, the model assumes no change in the balance of trade between the United States, Mexico and Canada.

From New York Times

Even by Mr. Trump’s own preferred metric, the balance of trade, his policy has failed: The trade deficit has risen to a 10-year high.

From New York Times

Related Words

• balance of payments
• trade deficit