How the favourable balance of trade an indicator of economic development of a country?

The balance of trade is the difference between the exports and imports of the country. The favourable balance of trade indicates the exports are greater than imports and it is known as trade surplus. The trade surplus has a positive impact on the development of the country and the positive impacts are:

• It increases the revenue of the economy as a whole because exports are revenue for the country.

• The product of the domestic market gets international recognition when it is exported to foreign countries.