Is it true that the imbalance in foreign trade occurred just before the Depression?

Yes, the imbalance in foreign trade was one of the contributing factors to the Great Depression. In the late 1920s, the United States experienced a significant trade deficit due to overproduction and declining foreign demand, which strained the economy. This imbalance, coupled with other economic factors, helped trigger the Stock Market crash of 1929 and the subsequent economic downturn.