Goals of Macroeconomics: Balance of International Trade

The Balance of International Trade is determined by a few factors:
1) is the difference between what a nation exports and what they import
2) A trade surplus is when exports are more than imprts
3) A trade deficit is when imports are more than exports

The Balance of Trade is measured by the exports minus imports.

Canada's Top Imports:
Machinery and Equipment
Automotive Products
Consumer Goods
Industrial and Agricultural Machinery
Agricultural and Fishing Products

Canada's Top Exports:
Automotive Products
Machinery and Equipment
Industrial Good and Materials
Forestry Products
Energy Products

A Balance of International Trade is achieved by adjusting a countries level of imports and exports.

A couple difficulties however in achieving this goal is that trade surpluses and trade deficits affect both interest rates and exchange rates.

Exports: selling goods to other countries, money comes in to Canada
Imports: buying goods from other countries, money goes out of Canada [1]
  1. ^ Goals lesson notes ECON 101, lecture, Red Deer College, Red Deer, January 2012