What is referred to when the value of exports is greater than the value of imports?

The situation where the value of exports exceeds the value of imports is known as a trade surplus. A trade surplus indicates that a country is selling more goods and services to other countries than it is buying from them, which can be a sign of economic strength. This scenario can lead to an inflow of foreign currency into the country, enhancing its foreign exchange reserves.

In contrast, a trade deficit occurs when imports surpass exports, which can signal economic challenges or an imbalance. An import quota refers to a limit on the quantity of a specific good that can be imported and does not directly relate to the balance between exports and imports. The term balance of trade typically refers to the difference between the value of exports and imports, but it does not specify whether this balance is positive or negative.