Exports in excess of imports result in trade _______.

Question

Question

This question was previously asked in

SSC GD Constable (2022) Official Paper (Held On : 09 Feb 2023 Shift 2)

Answer 1

The correct answer is surplus.

Key Points

When a country exports more than it imports, it generates a surplus, which means it has more foreign currency to spend than its trading partners.
It occurs due to a high demand for goods from a certain country in the global market.
A trade surplus also implies that the country has a net inflow of its local currency from the outside market.
A trade surplus can create employment and economic growth, but may also lead to higher prices and interest rates within an economy as well as a more expensive currency.

Additional Information

A deficit is the opposite of a surplus.
- It occurs when a country imports more than it exports, which means it has to borrow money from its trading partners to pay for the difference.
- This can lead to a decrease in the country's wealth and economic growth.
A zero budget means that the total amount of money spent by the government is equal to the total amount of money received.
- This has nothing to do with trade surplus or deficit.
Liability refers to the amount of money that a company or a country owes to others.