Answer in a paragraph:

Write a short note on balance of trade.

Balance of trade is the difference between the value of country’s imports and exports in a given time period. It is used to measure the economic health of a country. It is also known as international trade of balance.

If a country export is a greater value than its imports, it is called trade surplus, or positive balance, if a country imports a greater value than its exports, it is called trade deficit, or negative balance. In the words of the economy, the trade deficit is considered bad point in balance of trade of a country.