Changes in the trade balance of Bangladesh are analysed in this paper with the help of a theoretical framework which helps to decompose the change into price and quantity effects. The analysis is conducted in two parts pertaining to the two periods 1959/60 to 1968/69 and 1972/73 to 1974/75. It is shown that trade balance suffered adverse movement in both periods : however, in the earlier period favourable price effect substantially reduced the impact of adverse quantity changes, whereas in the latter period both price and quantity effects were unfavourable and they reinforced each other in creating adverse balance of trade.