What is a trade surplus?

Economics Balance Of Trade Questions



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What is a trade surplus?

A trade surplus refers to a situation where the value of a country's exports exceeds the value of its imports over a specific period of time. In other words, it occurs when a country sells more goods and services to other countries than it buys from them. This leads to an increase in the country's foreign exchange reserves and can have positive effects on its economy, such as creating jobs and stimulating economic growth.