Trade Gap (Noun)
Meaning
The difference in value over a period of time of a country's imports and exports of merchandise; "a nation's balance of trade is favorable when its exports exceed its imports".
Classification
Nouns denoting possession and transfer of possession.
Examples
- The country's trade gap widened significantly last year due to a sharp increase in imports of electronic goods.
- A large trade gap can lead to a decline in a country's foreign exchange reserves and a decrease in its credit rating.
- The government's efforts to reduce the trade gap by promoting exports have shown promising results in recent months.
- Economists are concerned that the growing trade gap will lead to higher inflation and a decrease in the standard of living.
- The trade gap has been a major issue in the country's economic policy debates, with some arguing that it is a sign of a strong economy and others seeing it as a threat to economic stability.