Question

What is ‘balance of trade ‘? Explain it’s two types​

Answer 1

Answer:

While importing and exporting for goods there are two situations that arise: Balance of Trade deficit: when the value of imports surpasses the total value of exports within a year. Balance of Trade surplus: this happens when the value of exports is more than the value of total imports of the country in a year.

Answer 2

Answer:

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).