Question

What is the sequence of events that could lead to trade surplus? Put these in Order

1. Tiles the selling nation’s currency value appreciates
2. import cost for the buying nation goes up
3. demand for foreign currency increases
4. import goes down in the buying nation
5. the buying nation’s currency value depreciates Sequence

Answer 1

Trade surplus is when the export of the country's product is greater than the cost of the imports. The correct state of events in chronological order that leads to trade surplus are:
2-3-4-5-1

Import cost for the buying nation goes up. Demand for foreign currency increases. Import goes down in the buying nation. The buying nation’s currency value depreciates. Tiles the selling nation’s currency value appreciates.