Question

what is trade balance what are its two components explain

Answer 1

Definition: The balance of trade compares the value of a country's exports of goods and services against its imports. When exports are greater than imports, that's a trade surplus. Most nations view that as a favorable trade balance. The opposite, when the value of imports outweighs the value of exports, is a trade deficit. Countries usually regard that as an unfavorable trade balance.

Answer 2

-. Trade balance is also known

as Balance of Trade ( BOT ) .

Trade balance is the

difference between the

values of country's imports

and exports for a given period

The Balance of Trade is

thelargest component of a

country's Balance of

Payments.

2 components are:

1. imports

2.Exports .....