Balshaw is one of Woodward's luxury selections for the summer tour of New Zealand, having started only two international games in the last year.
However, in a squad of 44, Woodward believes there is room to include players on trust.
"You know what he can do. He has the potential to make the Test team," said Woodward.
"I look at every player on his ability to make the Test team.
"The game he played against Scotland got him the nod over a lot of very good rivals - Chris Paterson, Kevin Morgan. It was a close call."