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LSDefine
Simple English definitions for legal terms
trade surplus
Read a random definition: inviolable
A quick definition of trade surplus:
A trade surplus is when a country sells more goods to other countries than it buys from them. This means that the country has extra money from selling more than it spent on buying. It's like having extra allowance money left over after buying everything you need.
A more thorough explanation:
Definition: A trade surplus occurs when a country exports more goods and services than it imports during a specific period.
Example: Let's say Country A exports $100 billion worth of goods and services to Country B, but only imports $80 billion worth of goods and services from Country B. This means that Country A has a trade surplus of $20 billion.
Explanation: A trade surplus is a positive balance of trade, which means that a country is earning more money from its exports than it is spending on its imports. This can be beneficial for a country's economy, as it can lead to increased employment, higher wages, and economic growth. However, a trade surplus can also lead to currency appreciation, which can make a country's exports more expensive and less competitive in the global market.