If a country had a trade surplus of $50 billion and then its exports rose by $30 billion and its imports rose by $20 billion, its net exports would now be $60 billion.
How do you define a trade surplus?
When a country's exports surpass its imports, it has a positive trade balance, which is measured economically as a trade surplus.
A country experiences a trade surplus when it exports more goods than it imports.
For instance, China would have a $800 billion trade surplus if its exports were $1 trillion and its imports were only $200 billion.
The whole trade of a country is gauged by its net exports. The calculation of net exports is as easy as subtracting the value of all the products and services a country exports from the value of all the goods and services it imports.
A country with positive net exports has a trade surplus, whereas a country with negative net exports suffers a trade deficit. Thus, a country's net exports are a part of its overall trade balance.
There are numerous reasons why businesses export their goods and services. If the goods open up new markets or widen existing ones, exports can boost sales and profits and may even offer the chance to gain a sizeable portion of the worldwide market.
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