Trade Balance

Trade balance is total Exports minus Total imports or Net Exports. Positive figure i.e. trade surplus means more exports than imports. While negative figure shows that the imports are more. A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit. There are different theories and views about Trade Balance's impact on the economy but normally a high reading is positive or bullish, while a low reading is negative (or bearish).

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