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.

BREAKING DOWN '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.

  1. Terms of Trade - TOT

    Terms of trade (TOT) are the ratio between a country's export ...
  2. Import And Export Price indexes ...

    The import and export prices indexes are two indexes that monitor ...
  3. Trade Deficit

    A trade deficit occurs a country's imports exceeds its exports. ...
  4. Trade Finance

    Trade finance is the funding of international trade by importers, ...
  5. Cash In Advance

    Cash in advance is a stipulation in some shipping agreements, ...
  6. Buyer's Credit

    Buyer's Credit is a loan that a bank or other financial institution ...
Related Articles
  1. Insights

    World's Top 10 Oil Exporters

    Discover the size of the global oil export market, and learn various details about the world's current 10 largest crude oil exporters.
  2. Insights

    The Biggest Losers From China's Slowdown

    A look at how China's slowdown is impacting countries around the world.
  3. Investing

    Trade Data Hints at a Shift in the Structure of the U.S. Economy

    Foreign trade data suggests that the U.S.'s technology edge may be dulling.
  4. Insights

    The Relationship Between Japanese And Chinese Economies

    China counts on Japan for its manufacturing savvy, while Japan needs China's market to help it grow out of an economic funk.
  5. Investing

    Should the U.S. Export Oil: Pros & Cons

    The U.S. banned exports of crude oil in the wake of the 1973 Arab embargo. Given that circumstances have changed, should it lift the ban?
  6. Insights

    Trump, Xi and Trade: Trade's Biggest Winners and Losers by State

    While the U.S. runs a big trade deficit with China, it's a different story at the state level.
  7. Investing

    How the Chinese Stock Market Heavily Affects the US

    Learn about the ways in which the Chinese stock market affects the U.S. economy, the dollar, the interest rate and imports and exports.
  8. Insights

    Why The Same Goods Have Different Prices Around The World

    Some items like electronics and automobiles have vastly different prices in different countries. Here's a look at why.
  9. Investing

    Japan’s Economic Growth is Rising (TOK, EWJ)

    Japan’s economy is soaring and industrial production is rising, but stocks remain down even after a sharp recent recovery.
  10. Insights

    Exploring the Current Account in the Balance of Payments

    Learn how a country's current account balance reflects the country's economic health.
  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. What country is the world's largest exporter of goods?

    Learn about the rapid economic growth China has experienced in recent years and how the country grew into the world's largest ... Read Answer >>
  4. What is a forward contract against an export?

    Understand forward exchange contracts in exporting, and learn the purpose of using a forward contract and its advantages ... Read Answer >>
  5. How would a standby letter of credit be used during an export transaction?

    Learn what a standby letter of credit is and how it works, as well as how a standby letter of credit is typically used for ... Read Answer >>
  6. What are key benefits to a country that has engaged in a policy of currency depreciation?

    Learn about key benefits to a country engaging in a policy of currency depreciation, such as smaller trade deficits, employment ... Read Answer >>
Hot Definitions
  1. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  2. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  3. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  4. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  5. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  6. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
Trading Center