AP MacroeconomicsInternational Trade & Finance
Trade Surplus
A trade surplus occurs when a country's exports exceed its imports, making net exports positive.
It adds to aggregate demand and means the country is a net lender to the rest of the world. It corresponds to a deficit in the financial account. It is the opposite of a trade deficit.
Formula / Example
Trade surplus = Exports − Imports (when positive).
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Study module
International Trade →
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