What does the term Balance of Trade refer to?

The term Balance of Trade specifically refers to the calculation of a country’s economic performance in international trade, defined as the value of a country's exports minus the value of its imports. When exports exceed imports, a country is said to have a trade surplus, while the opposite situation results in a trade deficit. This balance is a key indicator of a nation's economic health and competitiveness in the global market.

Other options relate to different economic concepts. The amount of taxes collected by a government pertains to fiscal policy and revenue generation, the employment rate indicates the health of the job market, and government spending levels reflect budgetary priorities and economic stimulation efforts. While all these elements contribute to the overall economic landscape, they do not define the Balance of Trade, which is solely focused on trade in goods and services.