What is a trade surplus?

A trade surplus occurs when a country's exports exceed its imports. This means that the value of goods and services that a nation sells to other countries is greater than the value of goods and services it purchases from them. A trade surplus is often seen as an indicator of a strong economy, as it suggests that a country is producing more than it consumes and is able to sell its surplus production abroad.

In this situation, the excess exports can lead to increased revenue for domestic producers, create jobs, and enhance the overall economic growth of the country. Countries with a consistent trade surplus may also accumulate foreign currency reserves, which can be beneficial for international trade and investment.

The other options describe conditions of trade balance or deficits, which do not align with the definition of a trade surplus. A trade surplus is specifically characterized by the positive difference between exports and imports, reinforcing the validity of the answer.