Final answer:
The correct answer is option 2. A trade surplus means an overall outflow of financial capital from an economy to other countries, while a trade deficit means an overall inflow of financial capital to an economy.
Step-by-step explanation:
A trade surplus means an overall outflow of financial capital from an economy to other countries. This occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade. The excess revenue from exports can be used to invest in other countries.
On the other hand, a trade deficit means an overall inflow of financial capital from abroad to an economy. It occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade. To cover the deficit, the country must borrow or receive investments from foreign entities.