Trade-balancing requirement
Trade-balancing requirement: a requirement that an investor use earnings from exports to pay for imports. It is based essentially on mercantilism. Such a condition always puts a limit on the growth of the firm concerned, and in this way also on the economic growth of host countries. Trade-balancing requirements contravene the provisions of the WTO Agreement on Trade-Related Investment Measures.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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