What is a trade surplus?

Economics Trade Surpluses And Deficits Questions



73 Short 80 Medium 80 Long Answer Questions Question Index

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 given 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 inflow of foreign currency and can result in an increase in a country's foreign exchange reserves.