When does a country has a positive balance of trade?

The correct answer is Option (2) → If the value of exports is more than the value of imports.

• A positive balance of trade (trade surplus) occurs when a country earns more from exports than it spends on imports.

• If imports are higher than exports, it results in a trade deficit.

• If exports equal imports, it is a balanced trade.

• A country that only imports would always have a negative balance of trade.