Physical balance of trade

Monetary balance of trade is different from physical balance of trade[36] (which is expressed in amount of raw materials, known also as Total Material Consumption). Developed countries usually import a lot of primary raw materials from developing countries at low prices. Often, these materials are then converted into finished products, and a significant amount of value is added. Although for instance the EU (as well as many other developed countries) has a balanced monetary balance of trade, its physical trade balance (especially with developing countries) is negative, meaning that a lot less material is exported than imported. For this reason, activist talk about the issue of ecological debt which implies a sort of predatory economic system. The nature of the trade balance statistics is such that is conceals distorted material flow.