trade balance ratio

Definition

Economics

• The ratio of value of exports to value of imports. Equals one if trade balance is zero, greater than one if a surplus, and less than one if a deficit. Has the advantage of indicating how large a surplus or deficit is compared to imports, since R=X/M and B=X-M imply R-1=B/M.

Nearby Definitions of “trade balance ratio”

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Contexts for “trade balance ratio”

1 definition in context
• Economics