The term balance of trade means that the value of exports balances the value of imports. This is important in an economic sense because if these two values are not balanced it can lead to either a trade surplus or a trade deficit. A trade surplus is when there are more exports than imports which can be good because a country is making more money than it is spending. The opposite of this is a trade deficit where there are more imports rather than exports.

Exports and imports are important terms to know when learning about the world of business because they are one of the most if not the most important aspects of trade. Exports are the goods that are made in a country and sold and imports are the goods that are purchased. Specializing in exporting goods that a country is relatively good at producing allows for a country to benefit significantly from trading.