answersLogoWhite

0

If a given nation or other economic unit exports more than it imports, it will accumulate money, which will constitute a trade surplus.

User Avatar

Wiki User

13y ago

What else can I help you with?

Continue Learning about Economics

Why has the goods and services balance sometimes shown a surplus while the merchandise trade balance shows a deficit?

The reason is that goods and services exports minus exports on merchandise trade plus services while merchandise trade is for only exports minus importsexcluding services. Goods and services is exports minus imports plus services. Merchandise trade is exports minus imports excluding services


What is trade surplus?

A positive balance of trade, exports exceed imports


Negative balance of trade?

A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.


What is balance of trade?

Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.


How does the government budget surplus affect the trade balance?

A government budget surplus occurs when a government's revenue exceeds its expenditures, which can lead to reduced borrowing and lower interest rates. This can strengthen the national currency, making exports more expensive and imports cheaper, potentially worsening the trade balance. However, a surplus can also reflect a healthy economy, which may increase domestic consumption and demand for imports, further impacting the trade balance negatively. Ultimately, the relationship between government budget surplus and trade balance is complex and influenced by various economic factors.

Related Questions

Why has the goods and services balance sometimes shown a surplus while the merchandise trade balance shows a deficit?

The reason is that goods and services exports minus exports on merchandise trade plus services while merchandise trade is for only exports minus importsexcluding services. Goods and services is exports minus imports plus services. Merchandise trade is exports minus imports excluding services


A trade surplus is generally known as a?

positive balance of trade.


What is trade surplus?

A positive balance of trade, exports exceed imports


Negative balance of trade?

A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.


Does Germany have a trade deficit?

No, Germany has a balance of payments surplus.


How would you define balance of trade?

The balance of trade, also known as net exports, is the difference between the dollar amount of merchandise exports and the dollar amount of merchandise imports.


The difference between a country's merchandise exports and its merchandise imports?

balance of trade


What is balance of trade?

Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.


How does the government budget surplus affect the trade balance?

A government budget surplus occurs when a government's revenue exceeds its expenditures, which can lead to reduced borrowing and lower interest rates. This can strengthen the national currency, making exports more expensive and imports cheaper, potentially worsening the trade balance. However, a surplus can also reflect a healthy economy, which may increase domestic consumption and demand for imports, further impacting the trade balance negatively. Ultimately, the relationship between government budget surplus and trade balance is complex and influenced by various economic factors.


Difference between trade surplus and trade dificit?

trade surplus is better than trade deficit because it entails a better balance of payments (BOP) while trade deficit entails poor balance of payments.trade surplus also implies that exports exceed imports.When a nation has a trade surplus, it has control over the majority of its own currency. This causes a reduction of risk for another nation selling this currency, which causes a drop in its value. When the currency loses value, it makes it more expensive to purchase imports, causing an even a greater imbalance.a trade deficit usualy has adverse effects on an economy especialy on the markets


Does Egypt have a trade surplus or trade deficit?

their trade surplus


Does Italy have a trade deficit or a trade surplus?

Germany currently has a trade surplus. COOL HUH !