Question

define term trade surplus. how was the income received from trade surplus with india used by britain


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Answer 1

Trade surplus

Explanation:

• The term surplus means when a country  exports a greater value than it imports.It is a  positive balance of trade, where a country's exports exceed its imports.  If a country imports a greater value than it exports, it has a trade deficit or negative trade balance.Nations with trade surpluses have several competitive advantages.

• The value of British exports to India was much higher than the value of British imports from India. So the British used it to import goods in Britain . So there was a complete balance of money. The amount of profit earned from India was used in importing things to Britain. So, there was a complete circulation of  Indian money.