The exchange of goods among people, states and countries is referred to as trade. The market is the place where such exchanges take place. Trade between two countries is called international trade. Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country.  Export and import are the components of trade. The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade. This is because the imports are burden for the economy and exports bring money into the country and make the economy grow. The balance of trade when is in positive means that the country is producing more and exporting and bringing more money into the economy as compared to imports.