Net Exports


DEFINITION of 'Net Exports'

The value of a country's total exports minus the value of its total imports. It is used to calculate a country's aggregate expenditures, or GDP, in an open economy.


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In other words, net exports is the amount by which foreign spending on a home country's goods and services exceeds the home country's spending on foreign goods and services. For example, if foreigners buy $200 billion worth of U.S. exports and Americans buy $150 billion worth of foreign imports in a given year, net exports would be positive $50 billion. Factors affecting net exports include prosperity abroad, tariffs and exchange rates.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  3. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  4. Price Scissors

    When the value of one set or sector of a group falls below the ...
  5. Export Incentives

    Monetary, tax or legal incentives designed to encourage businesses ...
  6. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
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  1. How does gross domestic product (GDP) affect standard of living?

    Gross domestic product (GDP) measures the total output of an entire economy by adding up total consumption, investment , ... Read Full Answer >>
  2. How are net exports influenced by the crowding out effect?

    Net exports, the value of a country's exports minus the value of its imports, tend to be smaller when government deficits ... Read Full Answer >>
  3. What factors cause shifts in aggregate demand?

    Aggregate demand, or AD, is defined as the total amount of goods and services consumers are willing to purchase in a given ... Read Full Answer >>
  4. What is a trade deficit and what effect will it have on the stock market?

    A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing ... Read Full Answer >>
  5. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

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