What is Trade Surplus? Meaning, Formula, Pros & Cons

Chennai Iiiem17 Feb, 2024Education

A trade surplus signifies robust demand for a country?s products in the global marketplace, leading to increased prices for such goods which directly makes our domestic currency stronger. Additionally, a trade surplus indicates high demand for a nation?s goods and services abroad, which typically results in price appreciation and further supports the strengthening of the national currency.