Suppose One countrys export is USD300 million and import is

Suppose: One country\'s export is USD300 million and import is USD290 million. Please calculate: Its trade balance is how much? Is this country deficit or surplus in trade?

Solution

Trade balance is the difference between the value of exports and imports.
Thus, Trade balance = Export value - Import value
= USD300million - USD290million = USD10million is the trade balance.
Here, Export value is greater than the import value, that means it is a favorable balance also called as trade surplus.