DEFINITION of 'Net Exporter'

A net exporter is a country or territory whose value of exported goods is higher than its value of imported goods over a given period of time. Countries produce goods based on the resources available in their region. Whenever a country cannot produce a particular good but still want it, that country can buy it from other countries who produce and sell that good. When a country purchases a good from another country and brings it to its own country to distribute to its people, that is an import. When a country produces a good domestically and then sells it to other countries, that is an export. When a country sells more goods to other countries than it buys, that is a net exporter.

A net exporter is the opposite of a net importer.

BREAKING DOWN 'Net Exporter'

Saudi Arabia and Canada are examples of net exporting countries because they have an abundance of oil which they then sell to other countries that are unable to meet the demand for energy. It is important to note that a country can be a net exporter in a certain area, while being a net importer in other areas. For example, Japan is a net exporter of electronic devices, but it must import oil from other countries to meet its needs.

When a country's total value of exported goods is higher than its total value of imports, it is said to have a positive balance of trade.

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