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Balance of trade (BOT) is the difference between the value of a country's imports and exports for a given period and is the largest component of a country's balance of payments (BOP).
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.
The balance of trade (BOT), also known as the trade balance, refers to the difference between the monetary value of a country’s imports and exports over a given time period. A positive trade balance indicates a trade surplus while a negative trade balance indicates a trade deficit.
The balance of trade formula is as follows: Balance of Trade = Country’s Exports – Country’s Imports. For example, suppose the USA imported $1.8 trillion in 2016 but exported $1.2 trillion to other countries. Then, the USA had a trade balance of -$600 billion, or a $600 billion trade deficit.
How to Calculate the Balance Of Trade (BOT) The trade balance is the difference between a country's exports and imports. This is the formula. EX - IM = TB . where. EX = Exports; IM = Imports; TB = Trade Balance; Exports are goods or services produced in the United States and sold to a foreign country.
The trade balance, also known as the 'balance of trade (BOT)', is the calculation of a country's exports minus its imports. How Does a Trade Balance Work? When a country imports more than it exports, the resulting negative number is called a trade deficit .
The balance of trade is a country's exports minus its imports. Learn about favorable and unfavorable trade balances and the balance of payments.