Trade Deficit or Surplus

Excess of imports over exports (trade deficit) or of exports over imports (trade surplus), resulting in a negative or positive Balance of Trade. The balance of trade is made up of transactions in merchandise and other movable goods and is only one factor comprising the larger current account (which includes services and tourism, transportation, and other invisible items, such as interest and profits earned abroad) in the overall Balance of Payments. Factors influencing a country's balance of trade include the strength or weakness of its currency in relation to those of the countries with which it trades (a strong U.S. Dollar, for example, makes goods produced in other countries relatively cheap for Americans), production advantages in key manufacturing areas (Japanese automobiles, for instance), or the domestic economy of a trading country where production may or may not be meeting demand.

Excess of imports over exports (deficit) or of exports over imports (surplus), resulting in a negative or positive Balance of Trade.

Excess of imports of goods (raw materials, agricultural and manufactured products, and capital and consumer products) over the exports of goods, resulting in a negative balance of trade. Trade surplus is the reverse. The balance of trade is distinguished from the Balance of Payments, which consists of the Current Account including services as well as merchandise trade and other invisible items such as interests and profits earned abroad. Factors that affect a country's balance of trade include the strength or weakness of its currency value in relation to those of the countries with which it trades and the comparative advantage in key manufacturing areas.

The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.

The noun has one meaning:

Meaning #1: an excess of imports over exports