What is meant by Balance of Trade?

  • October 27, 2020 05:22 PM AEDT
  • Team Kalkine

Balance of Trade (BOT) refers to the difference between the value of exports and imports of a country for a given period. Balance of Trade is a component under the Balance of Payments, which is a balance sheet maintained by a country for all types of international transactions related to assets, goods, loans, and others. Balance of Trade is added to Factor Income and Unilateral Income under the current account in a BOP.

26th feb webinar mtf mobile

Are Balance of Trade and Balance of Payments same?

Balance of Trade hugely impacts the Balance of Payments. However, a deficit or surplus in one does not always mean the same for the other. For instance, countries having a BOP surplus might also be observing a BOT deficit at the same time.


The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK