Countries trade when they sell and buy goods to each other. Imports are the goods that are sold abroad by a country. Exports are goods that are sold overseas. A country's trade balance is the difference between the value of its exports and the cost of its imports. If a country makes more money from its exports than it spends on its imports it has a trade surplus (a profit). However, if it has to spend more money on imports than it gets from its exports it has a trade deficit (a loss).