What is the impact of a trade surplus?

Answer 1

Actually a trade surplus--defined as a greater amount of sales to foreign countries than purchases by them--implies an inflow of currency, hopefully hard currency, into a country. This will prevent the rises in price implied in the consumer vulnerability that is an unfortunate part of a trade deficit, but it will not inherently drive prices down. From at least the early fifties to the middle sixties, the U.S. was the industrial and agricultural supplier to the world; yet prices still rose due to inflation.

Answer 2

trade deficit and trade surplus are to do with the nations trade, it shows whether the economy is: -exporting more than it imports (surplus) or -imports more than it exports (deficit). ideally an economy would like to neither a deficit or a surplus as they would be consuming exactly enough to satisfy its needs and wants. not too sure about currency ill get back to ya...

Answer 3

Trade surplus refers to more export than import for a country. With more production being made locally then there is no point to waste resources in importing the same things which may be more expensive. With more fund flowing in the country itself, then prices for commodities may fall, but this may eventually promote more consumer spending.

Answer 4

Trade surplus leads to either increased domestic demand for foreign assets or the revaluation of the domestic currency.

Answer 5

The end of the world.

Answer 6

Price of the good goes down.