What term describes the difference between a country’s value of exports and value of imports?

Balance of trade describes the difference between a country’s value of exports and value of imports.

A country has a trade surplus when the value of its exports exceeds the value of its imports. It has a trade deficit when imports exceed exports. The measure is commonly calculated for goods, services, or both, depending on the statistics being used.

Balance of trade is one component of the broader balance of payments. The balance of payments also includes services, primary income, secondary income, and financial transactions, so the two terms are not interchangeable.

A trade deficit is not automatically evidence of economic failure, and a surplus is not automatically evidence of economic strength. Exchange rates, domestic demand, investment, energy prices, supply chains, and accounting conventions can all affect the result. Analysts therefore examine the composition and context of trade balances.