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If a given nation or other economic unit exports more than it imports, it will accumulate money, which will constitute a trade surplus.

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Q: What the meaning of a surplus in the merchandise trade balance?
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Why has the goods and services balance sometimes shown a surplus while the merchandise trade balance shows a deficit?

The reason is that goods and services exports minus exports on merchandise trade plus services while merchandise trade is for only exports minus importsexcluding services. Goods and services is exports minus imports plus services. Merchandise trade is exports minus imports excluding services


What is trade surplus?

A positive balance of trade, exports exceed imports


Negative balance of trade?

A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.


What is balance of trade?

Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.


Difference between trade surplus and trade dificit?

trade surplus is better than trade deficit because it entails a better balance of payments (BOP) while trade deficit entails poor balance of payments.trade surplus also implies that exports exceed imports.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.a trade deficit usualy has adverse effects on an economy especialy on the markets

Related questions

Why has the goods and services balance sometimes shown a surplus while the merchandise trade balance shows a deficit?

The reason is that goods and services exports minus exports on merchandise trade plus services while merchandise trade is for only exports minus importsexcluding services. Goods and services is exports minus imports plus services. Merchandise trade is exports minus imports excluding services


A trade surplus is generally known as a?

positive balance of trade.


What is trade surplus?

A positive balance of trade, exports exceed imports


Negative balance of trade?

A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit.


How would you define balance of trade?

The balance of trade, also known as net exports, is the difference between the dollar amount of merchandise exports and the dollar amount of merchandise imports.


Does Germany have a trade deficit?

No, Germany has a balance of payments surplus.


The difference between a country's merchandise exports and its merchandise imports?

balance of trade


What is balance of trade?

Balance of trade is the relationship between a country's exports and imports. There is a trade surplus when a country's exports exceed its imports, and there is a trade deficit when a country's imports exceed its exports.


Difference between trade surplus and trade dificit?

trade surplus is better than trade deficit because it entails a better balance of payments (BOP) while trade deficit entails poor balance of payments.trade surplus also implies that exports exceed imports.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.a trade deficit usualy has adverse effects on an economy especialy on the markets


Does Egypt have a trade surplus or trade deficit?

their trade surplus


Why does the balance of payments always balance even though the balance of trade does not?

he balance of payments defines an economy's account of receipts and payments.it includes all current accounts and capital accounts. a deficit in current account is managed by creating a surplus in capital account and vice-versa.however,balance of trade is just the balance of exports and imports,exports receipts can be greater than import payments,this creates surplus in the economy and deficit in the other case. balance of trade is a component of BOP.


Does Italy have a trade deficit or a trade surplus?

Germany currently has a trade surplus. COOL HUH !