PhrasesHub

The balance of trade

    Definitions

      • economic
        The difference in value between a country's imports and exports of goods

      • fairness
        A state in which things are equal or evenly distributed

    Examples of The balance of trade

    • The country's economy has been struggling due to an unfavorable balance of trade.

      "Balance of trade" refers to the difference between a country's exports and imports. When a country exports more goods and services than it imports, it has a positive balance of trade, or a trade surplus. When a country imports more goods and services than it exports, it has a negative balance of trade, or a trade deficit. In this case, the country's economy is suffering because it is spending more money on imports than it is earning from exports, thereby leading to an imbalance in trade.

    • The government is implementing protectionist policies in order to rectify the unfavorable balance of trade.

      Protectionist policies involve restricting imports in order to protect domestic industries. This can include measures such as tariffs, quotas, and subsidies. By limiting imports, the government aims to boost demand for domestically produced goods and services, thereby reducing the country's trade deficit.

    • The trade relationship between our country and our largest trading partner is in a healthy balance.

      "Balance of trade" can also refer to the relationship between two countries' exports and imports with each other. In this example, the countries involved are in a position where their exports and imports are roughly equal. This is considered a healthy balance because it indicates that both countries are benefiting from the trade relationship.

    • The country's balance of trade has improved thanks to a surge in demand for its exports.

      When a country's exports increase, but its imports remain constant, it results in a shift towards a more favorable balance of trade. This is because the country is earning more revenue from exports than it is spending on imports, thereby reducing its trade deficit. In this example, the improved balance of trade is due to an increase in demand for the country's exports.

    • The country's balance of trade was severely affected by the increase in imports.

      This idiom is used to refer to the difference between the value of a country's exports and imports. In this case, the country's exports are not high enough to offset the rise in imports, resulting in a negative balance of trade.

    • The company's balance of trade with its sister company significantly improved last quarter.

      Here, 'balance of trade' refers to the trade relations between two specific entities, such as companies or countries. When their trading activities result in both parties benefiting equally, there is a balanced trade relationship.

    • The government is actively promoting exports to improve the overall balance of trade.

      This use of the idiom is at a macro level, where the government is trying to increase the country's exports to reduce the negative balance of trade by making the country's exports greater than its imports.

    • Due to the overseas expansion, the company's balance of trade became a major cause of concern.

      This example shows how the 'balance of trade' can change as the business environment evolves. Here, the company's overseas expansion resulted in a higher demand for imports, leading to a negative balance of trade.


    Conclusion

    "The balance of trade" is primarily used in economic contexts to refer to the difference in value between a country's imports and exports of goods. It can also be used to describe a state in which things are equal or evenly distributed.

    Origin of "The balance of trade"

    The phrase "the balance of trade" originated in the 17th century and is derived from the economic concept of trade balance, which refers to the difference in value between a country's imports and exports. It has since evolved to also encompass the idea of fairness and equilibrium in various contexts beyond just economics. The phrase is commonly used in discussions about international trade and economic policies to analyze the financial relationships between countries and the impact of trade imbalances.