Explain the meaning of a "trade balance"
Chapter1: Financial Statements And Business Decisions
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Explain the meaning of a "trade balance"
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Trade Balance is basically the difference between the country's imports and exports. It is also called as balance of trade for any country.
Trade Balance= Exports made by country- Imports made by country
this balance can determine the economic power and strength of any country. If the trade balance is positive, then the country has more economic strength. This situation is trade surplus and this is very favorable status of any country. There is more inflow of cash than outflow of cash.
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