trade surplus

Discipline: Economics

Also referred to as: favorable balance of trade

Trade surplus is a state in the trade balance of a country, where exports exceed imports. Most economists consider trade surplus as favorable.

The main factor that affects a country's trade surplus is probably the relative strength/weakness of its currency value. Another important factor is the comparative advantage of the country's industry. These comparative currency and industrialization values should be analyzed relative to those in countries with which the country in question trades.

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