A trade surplus occurs when a country exports more goods and services than it imports. This means that the value of what it sells to other countries is greater than the value of what it buys from them. A trade surplus can be a sign of a strong economy, as it indicates that domestic industries are competitive and in demand globally. When a country has a trade surplus, it can lead to an increase in national income and job creation. For example, if Country A exports a lot of electronics to Country B, the money earned can be reinvested in the economy, benefiting businesses and workers alike.