Balance of Trade (BOT)
What Is the Balance of Trade (BOT)?
Balance of trade (BOT) is the difference between the value of a country’s exports and the value
of a country’s imports for a given period. Balance of trade is the largest component of a
country’s balance of payments (BOP). Sometimes the balance of trade between a country’s
goods and the balance of trade between its services are distinguished as two separate figures.
The balance of trade is also referred to as the trade balance, the international trade balance,
commercial balance, or the net exports.
What’s the Balance of Trade?
KEY TAKEAWAYS
● Balance of trade (BOT) is the difference between the value of a country’s imports and
exports for a given period and is the largest component of a country’s balance of
payments (BOP).
● A country that imports more goods and services than it exports in terms of value has a
