balance of trade (BOT)

  

Definition

Largest component of a country's current account in its balance of payments (BOP) accounts, it shows the difference between export earnings and import expenditure. Called 'favorable' when the amount realized from physical (or tangible or visible) exports is more than the amount spent on physical imports, otherwise called 'unfavorable.' Also called trade balance.

Use this term in a sentence

  • The value of the imports and exports was check through a balance of trade, just to see how much money was in them all.

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  • I was examining the relationship of the two countries and I noticed the balance of trade was a perfect example of the economics involved.

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  • It is important that a country has a good record of their imports and exports to get the right answer for what is their balance of trade.

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