Balance of Trade
Trade Surplus
Trade Surplus is when a country exports more than it imports. This is the most favorable econonic position to be in.
Trade Deficit
If a country imports more than it exports than it is trade deficit. A country can also have a trade surplus with one country and a trade deficit with another.
Balance of Payments
The balance of payments is the difference between the amount of money that comes into a country and the amount that goes out of the country. A positive or favorable balance of payments occurs when a nation recieves more money in a year then it pays out. A negative balance of payments is just the opposite.