Importing is purchasing raw materials or products in other nations and bringing them into one's own country. A nation's balance of trade is the total value of its exports less the total value of its imports, over some period of time. If a country imports more than it exports, its balance of trade is negative and is said to be unfavorable. A trade deficit is an unfavorable balance of trade. A nation's balance of payments is the total flow of money into the country less the total flow of money out of the country, over some period of time.
Balance of payments is thus a much broader concept than balance of trade.
Restrictions to International Business Specialization and international trade can result in the efficient production of want satisfying goods and services on a worldwide basis. Yet the nations of the world continue to erect barriers to free trade. There are eight types of trade restrictions. Types of Trade Restrictions Tariffs . This tax has the effect of raising the price of the product in the importing nation.