Commercial trade : Surplus/Deficit

Trade surplus

A trade surplus occurs when a country's exports are greater than its imports, resulting in a positive balance of trade.

Trade deficit

A trade deficit occurs when a country's imports are greater than its exports, resulting in a negative balance of trade.

Commercial trade

commercial trade involves buying and selling goods and services to make a profit.

How can you see it’s an trade deficit ?

This indicates that the country is consuming more goods and services than it is producing, which can lead to job losses, economic challenges, and a weaker currency.

Ho can you see it’s an trade surplus ?

This indicates that the country is producing and selling more goods and services than it is consuming. It can lead to increased employment, economic growth, and a stronger currency.