What is a good trade balance?
What is a good trade balance? The difference between exports and imports is called the balance of trade. If imports are greater than exports, it is sometimes called an unfavourable balance of trade. If exports exceed imports, it is sometimes called a favourable balance of trade. What is the importance of balance of trade? The balance of trade is the most significant component of the balance of payments. The balance of payments adds international investments plus net income made on those investments to the trade balance. A country can run a trade deficit, but still have a surplus in its...