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Q.

What is trade surplus?


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a

Higher value of export than import

b

Higher value of import than export

c

When value of import equal value of export

d

None of these 

answer is A.

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Detailed Solution

The higher value of export than imports is trade plus. The trade surplus is when a country’s value of exports is higher than the value of imports. During the period of British colonisation, British products flooded the Indian market. The British value of exports to India was much higher than their import to India. Therefore Britain had a “trade surplus” with India and used this to deal with their trade deficit with other countries.
 
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