Trade Surplus
When country has a greater value of exports than its imports
Real World Example
During the New Imperialism period of 1800-1915, European powers sought trade surpluses to strengthen their economies by exporting more goods than they imported. This was important because a trade surplus allowed these countries to accumulate wealth, which they used to fund military expansion and colonization. The desire for a trade surplus responded to the idea of mercantilism, where nations believed that accumulating wealth through trade was the best way to gain power. Today, trade surpluses are still significant as they can indicate a strong economy; for example, countries like China have used trade surpluses to invest in infrastructure and global influence. For an individual, a trade surplus might explain why there are many affordable products from countries like China, impacting personal spending and job markets in manufacturing sectors.
