When the value of exports exceeds the value of imports into that country there is a Trade Surplus.
What is trade surplus?
A Trade surplus occurs when the result of the following calculation is positive.
- Trade balance = Total value of exports - Total value of imports
A Trade surplus is positive balance of trade through an economic measurement. basically It represents a net inflow of domestic currency from foreign markets.
What is a balance of trade?
- Trade balance is the difference between the value of goods that a country exports and imports.
- It is a net sum of a country exports and imports without taking into account all financial components.
- A positive balance occurs when exports > imports and it is referred to as Trade surplus.
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