Trade surplus

Definition

A trade surplus occurs when a country exports more goods and services than it imports, leading to a positive balance of trade. This situation indicates that a country is selling more abroad than it is buying from foreign markets.

Related terms

Balance of Trade:

The difference between the monetary value of a nation’s exports and imports over a certain period.

Exports:

Goods and services produced in one country and sold to buyers in another country.

Imports:

Goods and services purchased by one country from another country