The term of trade balance is called the record that a certain country keeps about the imports and exports that are carried out in it during a certain period of time, that is, the trade balance would be something like the difference that remains. to a country between exports and imports.
Imports are those expenses that companies, governments or people make with respect to the goods and services that are made in other countries and that are brought to their own, while exports are the goods and services that are produced in a given country. country and then sold and shipped to other countries.
These differences can be positive, a situation that will be called a trade surplus, or negative that will be called a trade deficit.
The deficit will appear when the quantity being compared, that of imports and exports, is less than the other. Then, there will be a trade deficit when the amount of goods and services that a country exports is less than the amount it imports and, on the other hand, when the amount of goods and services that a country exports is greater than the amount of goods it imports, we will be at the gates of what is known as a trade surplus.
