Choose given statement is true/false:

A trade surplus is a situation when the value of a country's exports exceeds the value of the country's imports.

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Detailed Solution

The above statement is True.
A trade surplus is a situation when the value of a country's exports exceeds the value of the country's imports. Example: Indian markets were flooded with British products throughout the nineteenth century. India exported more food grains and raw materials to Britain and the rest of the world. However, British imports from India were significantly less expensive than British exports to India. Thus, Britain's trade with India was in "surplus." Britain used this surplus to balance its trade deficits with other countries – that is, with countries from which Britain was importing more than it was exporting.

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