Overview
A trade surplus is an important economic indicator that shows when a country exports more than it imports. This situation can lead to various benefits, such as increased national income and job creation, as well as a stronger currency. However, it can also create tensions with other countries that m...
Key Terms
Example: Cars manufactured in Germany sold to the USA.
Example: Electronics imported from Japan.
Example: If a country exports $100 million and imports $80 million, it has a balance of trade of $20 million.
Example: A trade surplus can boost GDP.
Example: The value of the US dollar compared to the Euro.
Example: A country importing more oil than it exports.
Related Topics
Trade Deficit
Understanding when a country imports more than it exports.
beginnerGlobalization
The process of increased interconnectedness among countries.
intermediateEconomic Policy
How governments manage their economies, including trade policies.
intermediateCurrency Exchange Rates
How currencies are valued against each other and their impact on trade.
advancedKey Concepts
exportsimportsbalance of tradeeconomic impact