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TECHNOLOGY (BIZTEK)
PRESENTATION ON
BALANCE OF TRADE
Export:
Domestic product sold abroad
Import:
Foreign product sold
domestically
BALANCE OF TRADE
The term trade refers on import and export.
Trade balance is the difference between a
country’s imports and exports.
When a country’s imports surpass its exports over
a period of time, it is called a trade deficit.
When a country’s export exceed to import over a
period of time, its trade surplus or favorable
balance of trade.
A country’s balance of trade is its
largest component when it comes to
payments.
Balance of Trade
Trade Deficits
Trade Surpluses
Balance of Payments
UNDERSTANDING TRADE
BALANCE
Trade balance is a reflection of a country’s
international market and its domestic
consumption.
A country’s balance of trade comprises a
major segment of balance of payments.
This is an effective mechanism to quantify
a country’s overall economic transactions
with the rest of the world.
It also affects the country’s overall GDP for
that particular period.
Factors that effect trade balance
are :
Demand and Supply
Domestic Business
Trade agreement
Tariff and Policies
Exchange Rate
New Technology
Demand and supply