The balance of trade represents the monetary difference between a nation's exports and imports of goods (and sometimes services) over a specific time. A country achieves a trade surplus when exports surpass imports, while a deficit occurs when imports are greater; notably, modern economists widely reject the idea that trade deficits are inherently harmful. This balance is a crucial part of the current account and is influenced by factors like production costs, currency exchange rates, and various trade restrictions.

Measuring the balance of trade can be problematic due to data collection issues, illustrated by a global discrepancy where reported exports inexplicably exceed imports by nearly 1%, often attributed to illicit transactions or visibility problems. Furthermore, the monetary balance differs from the physical balance of trade, revealing that developed countries frequently import large amounts of raw materials, which are then processed and re-exported, thus obscuring their true material consumption.