A positive balance of trade is also known as a ________.

A positive balance of trade indicates that a country exports more goods and services than it imports. This situation is referred to as a trade surplus. A trade surplus is desirable because it contributes to a country's economic growth, increases national income, and can lead to a stronger currency. Essentially, the excess exports mean that foreign buyers are purchasing more from the country than its residents are buying from abroad, which strengthens the domestic economy.

In contrast, terms like trade deficit and trade imbalance denote scenarios where imports exceed exports. A trade balance refers to a situation where the values of imports and exports are equal, showcasing neither a surplus nor a deficit. Understanding these terms is crucial for analyzing a country's economic standing in the global market.