What is a Favorable Balance of Trade? - Definition | Meaning
Definition: Favorable balance of trade is a positive situation where a country exports more goods and services than what it imports. It is an economic term that refers to the existence of a surplus in the nation’s balance of trade.
Understanding the Balance of Trade: Definition, Calculation, Favorable …
Apr 26, 2024 · A favorable balance of trade (also known as a trade surplus) suggests that a country’s producers have a strong foreign market for their goods and services. A positive balance implies that local demand is satisfied, and there remains an active market for exports.
Balance of Trade (BOT): Definition, Calculation, and Examples
Jun 27, 2024 · What Is the Balance of Trade (BOT)? Balance of trade (BOT) is the difference between the value of a country's exports and the value of a country's imports for...
Balance of Trade: Favorable Versus Unfavorable
Mar 26, 2022 · A positive trade balance (surplus) is when exports exceed imports. A negative trade balance (deficit) is when exports are less than imports. Use the balance of trade to compare a country’s economy to its trading partners. A trade surplus is harmful only when the government uses protectionism.
Balance of trade | Definition, Impact & Examples | Britannica Money
Jan 13, 2025 · If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.
Balance of Trade and Balance of Payments - Econlib
The balance of trade is the official term for net exports that makes up the balance of payments. The balance of trade can be a “favorable” surplus (exports exceed imports) or an “unfavorable” deficit (imports exceed exports).
Balance of Trade - Definition, Formula, and Example
Nov 26, 2024 · A favorable balance of trade was an essential way of financing a country's purchase of foreign commodities and maintaining its export trade, according to the economic theory of mercantilism, which reigned in Europe from the 16th through the 18th centuries.
Balance of Trade: Definition, Types, Calculation, Effects
Balance of trade is a measure of a country's exports versus its imports. In simple terms, if a country sells more to other countries (exports) than it buys from them (imports), it has a positive or favorable, balance of trade. If it buys more than it sells, …
Balance of trade | What is, how is it calculated, positive, negative ...
What is balance of trade? Also known as the net export balance, balance of trade is the difference between the value of money between the exports and imports of a country's economy for a given period, measured in the currency of that economy.
What is Balance of Trade (BOT)? - My Accounting Course
Definition: Balance of Trade (BOT) is the difference in the value of all exports and imports of a particular nation over a period of time. A positive or favorable trade balance occurs when exports exceed imports.