The term trade balance is handled in the economic sphere as one of the elements that make up the balance of payments of a country. Represents the monetary inequality between imports and exports of a nation, in a given period of time. When the balance of the trade balance is negative, we speak of a trade deficit, that is, when the amount of exports is less than that of imports. Now, if the balance is positive, it means then that the amount of exports is higher than that of imports, then we would be talking about a trade surplus. When both balances are equal, a country's trade is said to be balanced.
There are some elements that can affect the balance of the trade balance, some of them are: the cost of production generated by an exporting economy compared to the importing one, the prices of products abroad and within the country, Restrictions related to the exchange system. The cost of transporting products from one country to another, and the tax rates established for both imports and exports.
It is favorable for any country to have a positive trade balance, that is to say, that it has a surplus, since this means that the country is receiving resources through profits, product of exports, and that the amount that is made by the Import payments are low, creating a positive effect, since national producers and the economy as a whole will have greater resources to carry out their activities and start new ones. In this way, the economy of a country is being encouraged and developed.
