what is a trade surplus 
a trade surplus is an economic measure of a positive balance of trade where a country s exports exceed its imports a trade surplus represents a net inflow of domestic currency from foreign markets it is the opposite of a trade deficit which represents a net outflow and occurs when the result of the above calculation is negative in the united states trade balances are reported monthly by the bureau of economic analysis bea 1understanding trade surplusa trade surplus occurs when trade balance is positive trade balance is equal to the total value of exports minus the total value of imports a trade surplus can create employment and economic growth but may also lead to higher prices and interest rates within an economy a country s trade balance can also influence the value of its currency in the global markets as it allows a country to have control of the majority of its currency through trade in many cases a trade surplus helps to strengthen a country s currency relative to other currencies affecting currency exchange rates however this is dependent on the proportion of goods and services traded by a country in comparison to other countries as well as other market factors 