Balance of Trade (BOT)

What is a Balance of Trade (BOT)?DefinitionBalance of trade is the difference in the value of a country’s exports and its imports. It is the most vital part of a current account. It is, therefore, the most strategic part of the balance of payments that processes all international transactions of a country. The current account is responsible for measuring all net income earned on a country’s foreign assets.Trade Surplus Vs Trade DeficitA trade surplus is said to occur when a country’s exports are greater than its imports. While a trade deficit is said to occur when a country’s imports are…
Source: Balance of Trade (BOT)

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