Trade Surplus

Trade Surplus
An economic measure of a positive balance of trade, where a country's exports exceeds its imports. A trade surplus represents a net inflow of domestic currency from foreign markets, and is the opposite of a trade deficit, which would represent a net outflow.

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.

Because a trade surplus usually creates a situation where the surplus only grows (due to the rise in the value of the nations currency making imports cheaper), there are many arguments against Milton Friedman's belief that trade imbalances will correct themselves naturally.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • trade surplus — UK US noun [countable] [singular trade surplus plural trade surpluses] economics a situation in which a country is selling more to other countries than it is buying from them Thesaurus: international trade …   Useful english dictionary

  • trade surplus — trade surpluses N COUNT If a country has a trade surplus, it exports more than it imports. [BUSINESS] The country s trade surplus widened to 16.5 billion dollars …   English dictionary

  • trade surplus — n technical the amount by which the value of the goods that a country sells to other countries is more than the value of the goods it buys from them …   Dictionary of contemporary English

  • trade surplus — noun count a situation where a country is selling more to other countries than it is buying from other countries …   Usage of the words and phrases in modern English

  • trade surplus — ► NOUN ▪ the amount by which the value of a country s exports exceeds the cost of its imports …   English terms dictionary

  • trade surplus — A nation s excess of exports over imports during a given time frame. Bloomberg Financial Dictionary * * * trade surplus trade surplus ➔ surplus1 * * * trade surplus UK US noun [C, usually singular] ECONOMICS, COMMERCE, FINANCE ► a situation in… …   Financial and business terms

  • trade surplus — UK / US noun [countable] Word forms trade surplus : singular trade surplus plural trade surpluses economics a situation in which a country is selling more to other countries than it is buying from them …   English dictionary

  • trade surplus — /treɪd sʒmpləs/ noun the difference in value between a country’s high exports and lower imports ▪▪▪ ‘Brazil’s trade surplus is vulnerable both to a slowdown in the American economy and a pick up in its own’ [Economist] …   Dictionary of banking and finance

  • trade surplus — noun A positive balance of trade. Ant: trade deficit …   Wiktionary

  • trade surplus — difference between the value of goods imported and exported …   English contemporary dictionary

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