Definition : commercial trade involves buying and selling goods and services to make a profit.
—> Trade surplus : occurs when a country's exports > its imports, resulting in a positive balance of trade
How to read it ? it 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.
—> Trade deficit : occurs when a country's imports < its exports resulting in a negative balance of trade.
How to read it ? indicate 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.