Final answer:
A country's trade balance is the gap between its exports and imports, determining if it has a trade surplus, deficit, or balanced trade. The current account balance includes a broader set of transactions beyond trade in goods, such as services and unilateral transfers.
Step-by-step explanation:
The trade balance of a country is a measure of the difference in value between its imports and exports. If a country’s exports exceed its imports, it has a trade surplus. On the contrary, if its imports are greater than its exports, it has a trade deficit. A perfectly balanced trade means that the exports and imports are equal. The current account balance goes beyond the trade balance to include trade in goods and services, international flows of income, foreign aid, and unilateral transfers. An overall balanced trade does not necessarily mean that the trade is balanced with each trading partner individually.