Calculating the trade balance gives you the net exports or imports between two countries. The balance of payments is an economic account that a country maintains to record the inflows and outflows of cash used to finance transactions between its residents and those of another country. The balance of trade, though, represents just exports and imports of goods and services.
Balance of Trade Calculation
To calculate a country's balance of trade, subtract the value of all goods and services it imports from a foreign country from the value of goods and services it exports to that same country. To illustrate, suppose the United States exports $100 million worth of goods and services to Canada, but only imports $60 million. In this case, the U.S. has a $40 million ($100 million – $60 million) trade surplus -- "favorable" is the technical term -- with Canada.
What Are Trade Payables?
Trade payables can be simply defined as monies owed by a business to its suppliers. When a business operates, it must spend...
How to Calculate Trade Credit Rates
When vendors extend credit to business customers by allowing them to defer payment for a delivered order, it’s called a trade credit....
How to Calculate an On-Balance Volume
On-balance volume (or OBV) is a technical analysis tool developed by famed analyst Joe Granville. He published his work in the book...
How to Calculate Accounts Receivable
When you make a sale for a good or service but don’t immediately take full payment, you create a receivable. Receivables are...
How to Calculate the Balance of Payments
The balance of payments is an economics concept that compares the transactions of the people in one country to the transactions of...
How to Balance Accounts Payable in Microsoft Dynamics
Accountants using the accrual basis method record invoices for future payment by debiting expense and crediting accounts payable (AP) trade in the...
How to Trade in a Car With a Balance on It
You can trade a vehicle if it is still has a loan on it. In fact, this is common at dealerships and...
How to Calculate the Opening Balance
The opening balance for any given month is simply the closing balance of the previous month. To find your opening balance, you...
How to Calculate Trade Creditor Days
Financial analysts use a number of different measures and ratios to forecast the future performance of a stock. Analysts particularly like to...
How to Calculate Balance of Trade as a Percentage
Balance of trade, sometimes called trade balance, is the difference between the total monetary amount of imports and exports of a particular...
What Are Accrued Trade Payables?
"Accrued trade payables" is not a legitimate accounting term, but is a combination of two accounting definitions: accrued liabilities and trade payables....