Financial Definition of Balance Of Trade

Net flow of goods (exports minus imports) between countries.

Browse or run a search for Balance Of Trade in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Balance Of Trade in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Balance Of Trade in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Balance Of Trade in the Legal Abbreviations and Acronyms Dictionary.

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Vocabularies (Semantic Web Information)

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See Also

Balance of payments.

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Legal English Vocabulary: Balance of Trade in Spanish

Online translation of the English legal term balance of trade into Spanish: balanza comercial (English to Spanish translation) . More about legal dictionary from english to spanish online.

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What is the meaning of Balance of Trade?

A definition of Balance of Trade is provided here: Reports the financial position of a firm at the end of a specific period of time. Balance sheet(s) consist of assets, liabilities, and owners’ equity.

Balance of Trade

Balance of trade in Global Commerce Policy

In this regard, balance of trade is: in standard usage, this is the balance between exports and imports in an economy. The concept conveys few analytical insights. The term also refers, however, to the occasional attempt or unstated longer-term aim of governments, rooted deeply in mercantilism, to ensure that the value of imports does not exceed that of exports. The entries on trade policy in the Encyclopedia are here. Usually, the concern is much greater about merchandise trade than about services trade. Where countries have applied import restrictions to balance their trade, they have usually only succeeded in reducing the overall amount of trade and thus in reducing welfare. Whether a country imports more goods than it exports depends on many factors, including its stage of economic development and the structure of its economy. Balanced merchandise trade is not in itself an indicator of successful economic policies. The entries on trade policy are here. As Schumpeter noted in his History of Economic Analysis, “an ‘unfavorable’ balance may be the symptom of increasing wealth, but also of a process of impoverishment; a ‘favorable’ one may mean prosperity and employment, but just as well the reverse”. See also beggar-thy-neighbour policies, mercantilism, trade deficit and trade surplus.[1]

Balance of tradein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

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Notes and References

1. Dictionary of Trade Policy, “Balance of trade” entry (OAS)

See Also

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See Also

• International Trade
• Trade Regulation
• International Economic Law
• Export License
• International Trade Law
• Foreign Trade
• Safeguard

Balance of Trade

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Further Reading

• Gottheil, Fred M., and Wishart, David. (1997). Principles of
  Economics with Study Guide. Cincinnati: South-Western
  College Publishing.
  Smith, Allen W. (1986). Understanding Economics. New
  York: Random House.
  U.S. Bureau of the Census, Foreign Trade Division. /
  census.gov/foreign-trade/site1/1998.
  LISA S. HUDDLESTUN
• Balance of Trade in the Encyclopedia of Business and Finance, 3rd Edition, Macmillan Reference USA, 2014