The Balance of Trade refers to the difference between a country's exports and imports over a specific period. When a country exports more goods and services than it imports, it has a trade surplus, which is generally seen as a positive economic indicator. Conversely, if imports exceed exports, the country faces a trade deficit, which can raise concerns about economic health and sustainability. This balance is crucial for understanding a nation's economic position in the global market. For instance, countries like China often have a trade surplus due to their strong manufacturing sector, while others, like the United States, may experience trade deficits because of high consumer demand for foreign products.