If the value of a nation's merchandise exports exceeds merchandise imports, the nation is running a

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If the value of a nation's merchandise exports exceeds merchandise imports, it means the nation is running a balance of trade surplus. This means that the nation is exporting more goods and services than it is importing, and therefore has more money coming in from exports than going out to pay for imports. A capital account deficit or surplus, on the other hand, relates to the flow of investment capital into or out of the country, and is not directly related to the balance of trade.

If the Value of a Nation's Merchandise Exports Exceeds Merchandise