Net Exports

Loading the player...

What are 'Net Exports'

Net exports refer to 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.

BREAKING DOWN 'Net Exports'

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.

RELATED TERMS
  1. Dollar Drain

    When a country imports more goods and services from another country ...
  2. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  3. Current Account Deficit

    A measurement of a country’s trade in which the value of goods ...
  4. Export Incentives

    Monetary, tax or legal incentives designed to encourage businesses ...
  5. Commercial Policy

    The regulations and policies that determine how a country conducts ...
  6. Drawback

    Any form of tax or tariff that is rebated to the payor. This ...
Related Articles
  1. Term

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. Economics

    The Balance Of Trade

    The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. ...
  3. Economics

    Breaking Down The Balance Of Trade

    The balance of trade is a key indicator of a nation’s health. Investors and market professionals appear more concerned with trade deficits than trade surpluses, since chronic deficits may be ...
  4. Economics

    How Imports And Exports Affect You

    Imports are an important indicator of an economy’s health. In a healthy economy, exports and imports are both growing.
  5. Forex Fundamentals

    6 Factors That Influence Exchange Rates

    An in depth look at out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  6. Investing News

    Japanese Exports Down for Fifth Consecutive Month

    Japan is an export driven economy and is expected to fall into another recession if exports continue to wither.
  7. Investing News

    China’s Stock Market Tumbles on Weak Export Data

    China's exports declined by 25.4% in February, imports also dropped by 13.8%, with trade surplus declining to $32.6 billion in February from $63.29 billion in January
  8. Economics

    Current Account Deficit

    A current account deficit occurs when a country spends more money on the goods and services it imports than it receives for the goods and services it exports.
  9. Forex Education

    Weakest Currencies against the U.S. Dollar in 2015

    The U.S. dollar has been pummeling other currencies, largely due to falling global commodity prices. Here are the worst performing currencies of 2015.
  10. Economics

    How To Fight The Resource Curse

    Countries focusing on commodity exports face a potentially crippling problem. Find out how to prevent Dutch disease.
RELATED FAQS
  1. 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 Answer >>
  2. How does comparative advantage influence the balance of payments?

    Learn how comparative advantage affects a country's balance of exports and imports, which in turn influences the overall ... Read Answer >>
  3. Which factors can influence a country's balance of trade?

    Find out about the factors that affect a country's overall balance of trade, including factor endowments, barriers to trade, ... Read Answer >>
  4. Are Social Security payments included in the US GDP calculation?

    Understand how gross domestic product is calculated and whether or not transfer payments such as Social Security are included ... Read Answer >>
  5. How do fiscal and monetary policies affect aggregate demand?

    Learn about the impact fiscal and monetary policy have on aggregate demand, and discover how the government influences economic ... Read Answer >>
  6. How do changes in national interest rates affect a currency's value and exchange ...

    Understand the role that changes in interest rates can play in determining the value and foreign exchange rate of a country's ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center