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Any country with a trade surplus necessarily has a healthy economy (e.g. is experiencing an economic...

Any country with a trade surplus necessarily has a healthy economy (e.g. is experiencing an economic expansion). true or false

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Answer #1

TRUE ,

As trade surplus occurs when there is more export of goods and services taking place in a country than the quantity they are allowing the other country to import . This means the trade balance is positive .

Trade balance = total value of export - total value of import

when the value coming out of this should be positive , which will lead to the trade surplus .

trade surplus helps in the generation of more employment in the nation and an increase in the economic growth . trade surplus happens because there is a high demand of the goods and services provided by one country to the other due to which the price of the good and services will increase in the international market and will lead to the strengthening the economic currency .

if a country is having a trade surplus is good but after a long time it may lead to the high prices and interest rate within an economy due to which it can turn into trade deficit also .

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