Net Importer

AAA

DEFINITION of 'Net Importer'

A country or territory whose value of imported goods is higher than its value of exported goods over a given period of time.

A net importer is the opposite of a net exporter.

INVESTOPEDIA EXPLAINS 'Net Importer'

For example, Japan is one of the most industrialized nations in the world, but the bulk of the oil it requires is imported from other countries. Therefore, Japan is considered to be a net importer of oil. It is important to note that a country can be a net importer in a certain area, while being a net exporter in other areas. For example, Japan exports more technological devices than it imports, which makes Japan a net exporter in this area of the economy.

A country whose total value of all imported goods is higher than its value of all exports is said to have a negative balance of trade.

RELATED TERMS
  1. Price Scissors

    When the value of one set or sector of a group falls below the ...
  2. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  3. Net Exports

    The value of a country's total exports minus the value of its ...
  4. Net Borrower

    An entity that borrows more than it saves or lends out. A net ...
  5. Export

    A function of international trade whereby goods produced in one ...
  6. Import

    A good or service brought into one country from another. Along ...
RELATED FAQS
  1. How does the price of oil affect Russia's economy?

    During the second half of 2014, Americans celebrated a rapid decline in the price of oil and gas. Cheap oil has a similar ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    Understanding Capital And Financial Accounts In The Balance Of Payments

    The current, capital and financial accounts compose a nation's balance of payments.
  2. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  3. Forex Education

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  4. Economics

    What Is The World Trade Organization?

    The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it?
  5. Economics

    Understanding Perpetuity

    Perpetuity means without end. In finance, a perpetuity is a flow of money that will be received on a regular basis without a specified ending date.
  6. Economics

    What is the Income Effect?

    In economics, the income effect is the change in the consumption of goods caused by a change in income, whether income goes up or down.
  7. Fundamental Analysis

    What is a Null Hypothesis?

    In statistics, a null hypothesis is assumed true until proven otherwise.
  8. Economics

    Asian LNG Prices: Not Likely To Rise Anytime Soon

    Asian LNG prices could stay low for an extended period of time, due to low oil prices, less demand and new LNG-producing projects on various continents.
  9. Economics

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  10. Economics

    Venezuela Teeters On Edge As Oil Revenues Shrink

    Low oil prices have drastically revised the economic status quo -- dealing a destabilizing blow to oil-exporters like Venezuela due to falling oil revenue.

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center