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... generally lower than in the U.S. This means it can offer its cloth on the U.S. market at a price below that of most U.S. cloth producers. This is indicated in the figure by a U.K. price (Pa - the price after trade) that is below the U.S. price of Pb. Given the lower U.K. price, U.S. consumers will b ...
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Balance of trade



The commercial balance or net exports (sometimes symbolized as NX), is the difference between the monetary value of exports and imports of output in an economy over a certain period, measured in the currency of that economy. It is the relationship between a nation's imports and exports. A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance.
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