Previous Page

Trade surplus

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

Table of Contents

Trade Surplus

A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. A trade surplus represents a net inflow of domestic currency from foreign markets. It is the opposite of a trade deficit, which represents a net outflow of domestic currency to foreign markets.

A trade surplus is seen as an indication of a country’s economic strength, as it suggests that the country is able to produce more goods and services than it consumes. It can also be seen as a sign of a country’s competitive advantage in the global marketplace.

A trade surplus can be beneficial for a country’s economy, as it can lead to increased economic growth and job creation. However, it can also lead to currency appreciation, which can make a country’s exports less competitive in the global market.

History of Trade Surplus

The concept of a trade surplus has been around since the early days of international trade. In the 18th century, the British economist Adam Smith wrote about the concept of a trade surplus in his book The Wealth of Nations. He argued that a country should strive to maintain a trade surplus in order to increase its wealth.

In the 19th century, the German economist Friedrich List wrote about the concept of a trade surplus in his book The National System of Political Economy. He argued that a country should strive to maintain a trade surplus in order to increase its economic power.

In the 20th century, the American economist John Maynard Keynes wrote about the concept of a trade surplus in his book The General Theory of Employment, Interest and Money. He argued that a country should strive to maintain a trade surplus in order to increase its economic stability.

Table of Comparisons

Country Trade Surplus (in billions of USD)
China $421.5
Germany $287.2
Japan $195.3
South Korea $69.2
United States -$621.0

Summary

A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. It is seen as an indication of a country’s economic strength, as it suggests that the country is able to produce more goods and services than it consumes. It can be beneficial for a country’s economy, as it can lead to increased economic growth and job creation. However, it can also lead to currency appreciation, which can make a country’s exports less competitive in the global market.

For more information about trade surpluses, please visit the websites of the World Bank, the International Monetary Fund, and the World Trade Organization.

See Also

  • Balance of Trade
  • Trade Deficit
  • Currency Appreciation
  • Exchange Rate
  • Tariffs
  • Protectionism
  • Globalization
  • International Trade
  • Foreign Direct Investment
  • Gross Domestic Product

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly