Western Governors University (WGU) BUS2070 D080 Managing in a Global Business Environment Practice Exam

The concept that promotes a surplus of exports over imports is fundamentally known as a trade surplus. A trade surplus occurs when a country's exports exceed its imports, resulting in a positive balance of trade. This scenario indicates that a nation is selling more goods and services to other countries than it is buying from them, which can contribute to economic growth, job creation, and an overall stronger economy.

A trade surplus is often considered favorable as it may reflect a competitive advantage in certain industries, allowing countries to establish strong trade relationships and improve their currency value. This can also foster greater domestic production, as industries are encouraged to produce more to meet international demand.

In contrast, free trade refers to an economic policy where governments do not restrict imports or exports through tariffs or quotas, and it does not inherently guarantee a surplus. A trade deficit, on the other hand, signifies that imports exceed exports, resulting in a negative balance of trade, which is opposite of what is associated with a trade surplus. Comparative production is a concept related to efficiency in production that does not directly address the balance of trade.