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Needs graph for this question Briefly explain what the term "balance of trade" refers to from...

Needs graph for this question

Briefly explain what the term "balance of trade" refers to from a macroeconomic perspective and include a brief description of how exports and imports influence the balance of trade. The balance of trade refers to the gap, if any, between a nation’s exports, or what its producers sell abroad, and a nation’s imports, or the foreign-made products and services purchased by households and businesses. If exports exceed imports, the economy is said to have a trade surplus. If imports exceed exports, the economy is said to have a trade deficit. If exports and imports are equal, then trade is balanced.

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Answer #1

The balance of trade is the difference between between the value of country's imports and value of the country's exports.Balance of trade is the most significant component of the current account and is also the biggest component of balance of payments that measure all international transactions. If the value of exports is greater than the value of imports, then balance of trade is positive and if the value of exports is less than value of imports, then the balance of trade of the nation is negative.

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