What is referred to when a nation exports more goods than it imports?

When a nation exports more goods than it imports, it is referred to as a trade surplus. This situation indicates that the value of the goods and services sold to other countries exceeds the value of those purchased, which can be beneficial for the nation’s economy. A trade surplus often implies that a country is in a strong trading position, suggesting that its industries are competitive on a global scale. Additionally, this can lead to an influx of foreign currency, which can contribute to stronger economic growth and increased investment in domestic industries.

The concept of a balance of trade refers to the overall difference between exports and imports, but it does not specifically denote a surplus or a deficit. In contrast, a trade deficit occurs when imports exceed exports, which is the opposite of a surplus. Favorable trade might imply beneficial conditions for a nation’s trade policy but is not a standardized term used in economic discussions about trade balances.