<P> The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain period . Sometimes a distinction is made between a balance of trade for goods versus one for services . "Balance of trade" can be a misleading term because trade measures a flow of exports and imports over a given period of time, rather than a balance of exports and imports at a given point in time . Also, balance of trade does not mean that exports and imports are "in balance" with each other or anything else . </P> <P> If a country exports a greater value than it imports, it has a trade surplus, positive balance, or a "favourable balance", and conversely, if a country imports a greater value than it exports, it has a trade deficit, negative balance, "unfavorable balance", or, informally, a "trade gap". A positive balance adds to gross domestic product, while a negative balance subtracts from GDP . </P> <P> The balance of trade forms part of the current account, which includes other transactions such as income from the net international investment position as well as international aid . If the current account is in surplus, the country's net international asset position increases correspondingly . Equally, a deficit decreases the net international asset position . </P>

What does it mean when a country has an unfavorable balance of trade