Question

Define the term trade surplus .how was the income recieved frm trade surplus with india used by britain

Answer 1

This is the answer



When the value of exports is higher than value of imports, it is called as ‘Trade Surplus’.
(ii) Britain used this surplus to balance its trade deficits with other countries - that is. with countries from which Britain was importing more than it was selling to.
(iii) This is how n multi-lateral settlement system works - it allows one country’s deficit with another country to be settled by its surplus with a third country.
(iv) By helping Britain balance its deficits. India played a crucial role in the late- nineteenth century world economy.

Answer 2

When the value of exports is higher than the value of imports, it is called as ‘Trade Surplus’.
(ii) Britain used this surplus to balance its trade deficits with other countries - that is. with countries from which Britain was importing more than it was selling to.
(iii) This is how n multi-lateral settlement system works - it allows one country’s deficit with another country to be settled by its surplus with a third country.
(iv) By helping Britain balance its deficits. India played a crucial role in the late- nineteenth-century world economy.
(v) Britain’s trade surplus in India also helped to pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.