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Balance of Trade

Balance of Trade

Balance of Trade is a value which defines a country’s international trade: it is the difference between how much a country imports and how much it exports. The difference between the two is a measure of a country’s trade competitiveness. If a country exports more than it imports, then the said country’s currency will strengthen and is good for its economy. If the country imports more than it exports, the country is said to be uncompetitive. If the values are equal, a net balance is said to be formed.

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