A balance of trade (trade balance) is the difference between the monetary values

A balance of trade (trade balance) is the difference between the monetary values of exports and imports of a countrys economic output over a given period of time. Trade balance can be positive (favorable) when the value of exports is greater than the value of imports. The positive trade balance is also called trade surplus. On the other hand if the value of imports is greater than the value of exports the trade balance indicates trade deficit. Trade balance affects the Gross Domestic Product (GDP) of a country since net export is a component of the GDP. It also affects the exchange rate of a countrys currency. Must be at least 100 words