... can think of. If the UK sells a Rover car (made in Britain) to someone in a French car showroom, then this is called an export and appears as an inflow of money (+) in the 'trade in goods' section of the current account. If Renault (the French Car Company) sell a car to someone in a British car showroom, then this is called an import and appears as an outflow of money (-) in the same section. The 'trade in goods' balance is often referred to as the trade balance. This is the total value of exports of goods, subtracting the total value of imports of goods. In the case of the UK, this balance is nearly always negative, so it is known as the trade deficit; the UK always imports more goods than it exports. Trade in services,(in the old days services, investment income and transfers were all lumped in ...

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