Goods and Services Trade

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Definition of 'Goods and Services Trade'

Goods and Services Trade refers to the buying and selling of goods and services between countries. When a country exports goods and services, it is selling them to other countries, and when it imports them, it is buying them from other countries.

The balance of trade refers to the difference between a country's exports and imports of goods and services. If a country exports more than it imports, it has a trade surplus, while if it imports more than it exports, it has a trade deficit.

The balance of trade is an important economic indicator, as it can affect a country's economic growth, employment, and overall economic health. A trade surplus can contribute to economic growth, as it means that a country is selling more goods and services than it is buying, while a trade deficit can lead to economic challenges, such as a decrease in domestic employment or a weakening of the currency.

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