trade surplus: meaning, definition, pronunciation and examples
C1Formal, Technical
Quick answer
What does “trade surplus” mean?
The amount by which the value of a country's exports exceeds the value of its imports over a given period.
Audio
Pronunciation
Definition
Meaning and Definition
The amount by which the value of a country's exports exceeds the value of its imports over a given period.
Refers to a positive balance of trade, indicating net inflow of domestic currency from foreign markets, often associated with economic strength, currency valuation, trade policies, and implications for global trade dynamics.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage; both varieties use the term identically in economic contexts.
Connotations
Generally neutral in technical discourse, but may carry positive connotations in public discourse when linked to national economic performance.
Frequency
Equally common in British and American English, frequently appearing in economic reports, news media, and academic publications.
Grammar
How to Use “trade surplus” in a Sentence
Country + has + trade surplusEconomy + runs + trade surplusTrade surplus + of + amountAchieve + trade surplus + with + countryVocabulary
Collocations
Examples
Examples of “trade surplus” in a Sentence
verb
British English
- Britain trades extensively with Europe, aiming to sustain a trade surplus.
- The company trades in goods that help maintain a national trade surplus.
American English
- The US trades globally but often struggles to achieve a trade surplus.
- Firms trade strategically to contribute to the country's trade surplus.
adverb
British English
- The economy performed well trade-surplus-wise last quarter.
- Exports grew trade-surplus-like, boosting confidence.
American English
- Regarding trade surplus, the country has made progress.
- The market reacted trade-surplus-positively to the news.
adjective
British English
- The trade-surplus data indicated strong export performance.
- A trade-surplus economy like Germany's influences EU policies.
American English
- Trade-surplus figures are closely monitored by economists.
- The nation's trade-surplus status affects its currency value.
Usage
Meaning in Context
Business
Common in corporate reports, international trade negotiations, and market analysis to evaluate economic performance and competitiveness.
Academic
Frequently used in economics textbooks, research papers, and lectures to discuss trade theories, balance of payments, and economic indicators.
Everyday
Rare in casual conversation; primarily encountered in news broadcasts, financial discussions, or when discussing national economy.
Technical
Precise term in balance of payments accounting, economic statistics, and policy documents, with specific definitions in international trade frameworks.
Vocabulary
Synonyms of “trade surplus”
Strong
Neutral
Weak
Vocabulary
Antonyms of “trade surplus”
Watch out
Common Mistakes When Using “trade surplus”
- Using 'trade surplus' interchangeably with 'budget surplus', which relates to government finances.
- Mispronouncing 'surplus' with stress on the second syllable (e.g., /sərˈpluːs/) instead of the first (/ˈsɜːrpləs/).
FAQ
Frequently Asked Questions
A trade surplus occurs when a country's total value of exports (goods and services sold abroad) is greater than its total value of imports (goods and services bought from other countries) over a specific period, such as a year.
It can strengthen the national currency, increase foreign reserves, and boost domestic industries, but may also lead to trade disputes or reduced domestic consumption if over-relied upon.
Not necessarily; while it often signals economic competitiveness, it can also result in trade tensions, currency appreciation harming other sectors, or indicate underconsumption domestically.
Trade surplus refers specifically to the balance of goods and services, whereas current account surplus includes trade balance plus net income from abroad and net transfers, providing a broader measure of international economic position.
The amount by which the value of a country's exports exceeds the value of its imports over a given period.
Trade surplus is usually formal, technical in register.
Trade surplus: in British English it is pronounced /treɪd ˈsɜːpləs/, and in American English it is pronounced /treɪd ˈsɝːpləs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None”
Learning
Memory Aids
Mnemonic
Think 'SURplus' as 'SURpassing imports'—trade surplus means exports surpass imports, giving an extra advantage.
Conceptual Metaphor
Trade surplus as a 'scorecard' in economic competition, or as a 'savings account' accumulating foreign assets.
Practice
Quiz
What is the primary implication of a trade surplus?