WHAT IS NET EXPORT AND NET IMPORT?

Net export is the value of a nation's total trade of goods and services.

Net export is calculated as the difference between a country's export of goods and services and its import of goods and services.

Net exports can either be positive or negative.

A positive net export indicates a trade surplus, which means the value of a country's export exceeds the value of its import of goods and services.

It indicates that a country earns more money from goods and services sold in foreign markets (export) than it spends on goods and services from other countries (import).

A positive net export (or trade surplus) increases the GDP of the country.

A negative net export indicates a trade deficit, which means the value of a country's imports is greater than its export of goods and services.

It means a country spends more money on foreign goods and services than it earns from goods and services sold overseas.

A negative net export (or trade deficit) decreases the GDP of a country

What is Net Import?

Net export is calculated as the difference between a country's imports of goods and services and its exports of goods and services.

Net import and net export are connected because net import is only used when a country's imports exceed its exports, whereas net export is usually used when a country's exports exceed its imports.

Indeed, a net import is also referred to as a trade deficit or negative net export.

Net import can either be positive or negative.

A positive net import indicates trade deficits, which means the value of a country's import is greater than its export of goods and services. 

It indicates that a country spends more money on imported products and services than it gets from exporting goods and services.

While a positive net export increases Gross Domestic Product (GDP), a positive net import decreases GDP.

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A negative net import indicates a trade surplus, which means that the value of a country's export is greater than its import of goods and services.

A negative net import increases Gross Domestic Product just like positive net exports will increase GDP.

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