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DEFINITION of 'Balance Of Trade - BOT' The difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad.
Mr. Yaqoob and Elke define the answer in detail. I Agreed with answer of my colleagues Mr. yaqoob and Elke woofter.
You explained the BOP, then what's the relation between BOP and BOT?
The balance of trade is the difference between what a country imports and what it exports expressed as a currency value, much as Mr. Ramasamy Sr. expressed.
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.'
the difference between exports and imports of a country in currency value
I fully agree with you MR vinod jetley. thanks.
Agree with Mr. Vinod Jetley >>>>>>>>>>>>>>>>>
It's an international trade indicator that compares imports and exports of goods and services. The trade balance is expressed as a:
Trade deficit: where imports exceed exports
or
Trade surplus: where exports exceed imports
Investopedia explains Balance Of Trade - BOT
The balance of trade is one of the most misunderstood indicators of the U.S. economy. For example, many people believe that a trade deficit is a bad thing. However, whether a trade deficit is bad thing is relative to the business cycle and economy. In a recession, countries like to export more, creating jobs and demand. In a strong expansion, countries like to import more, providing price competition, which limits inflation and, without increasing prices, provides goods beyond the economy's ability to meet supply. Thus, a trade deficit is not a good thing during a recession but may help during an expansion.
The difference between a country's imports and its exports. BOT is the largest component of country's balance of payment. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Cerdit items include export, foreign spending in the domestic economy and foreign investment in the domestic economy. The country has a trade deficit if it imports more than it exports, the oposite scenario is the trade surplus.
Agreed to all experts.......................
