what is the balance of trade bot 
balance of trade bot is the difference between the value of a country s exports and the value of a country s imports for a given period balance of trade is the largest component of a country s balance of payments bop sometimes the balance of trade between a country s goods and the balance of trade between its services are distinguished as two separate figures the balance of trade is also referred to as the trade balance the international trade balance the commercial balance or the net exports investopedia matthew collinsunderstanding the balance of trade bot the formula for calculating the bot can be simplified as the total value of exports minus the total value of its imports the bot on its own is not an indicator of economic health and a negative trade balance is not necessarily bad in order to use the trade balance as part of an economic health assessment context is needed one must look at why the balance is positive or negative a country that imports more goods and services than it exports in terms of value has a trade deficit or a negative trade balance conversely a country that exports more goods and services than it imports has a trade surplus or a positive trade balance a positive balance of trade indicates that a country s producers have an active foreign market after producing enough goods to satisfy local demand there is enough demand from customers abroad to keep local producers busy a negative balance of trade means that currency flows outwards to pay for exports indicating that the country may be overly reliant on foreign goods however that is not always the case it could also mean the country is wealthy and has a high level of demand that needs to be satisfied calculating the balance of tradea country s balance of trade is calculated by the following formula bot exports imports begin aligned textbf bot textbf exports textbf imports end aligned bot exports imports 