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What is the difference between a trade surplus and a trade deficit?

The difference between what a country exports and what it imports is called the balance of trade. If a country exports more than it imports we call this a trade surplus. And if a country pays more for its imports than it gets for its exports it has a trade deficit. In some countries the government controls all trade and in others it allows companies and firms to trade freely. However, all governments control trade in some way. Sometimes a government forbids companies to buy or sell dangerous or illegal products, or military technology.