trade balance investment & finance definition

The difference between the volume of a country’s exports and its imports. An excess of exports means that a country has a trade surplus. An excess of imports means that the country has a trade deficit. The balance of trade measures goods and services. The balance of trade is part of the balance of payments, a measurement that isn’t given much scrutiny by the financial markets. The balance of payments is much more comprehensive than the balance of trade because it includes investment income flows and transfer payments. The U.S. Department of Commerce releases monthly data on the United States’ trade balance.