Net exports represent the difference between a country's total exports (goods and services sold abroad) and its total imports (goods and services purchased from abroad). It indicates whether a nation has a trade surplus (exports exceed imports) or a trade deficit (imports exceed exports).
Think of net exports as the "balance sheet" for international trade. If a country sells more goods and services to other nations than it buys, it's like earning a profit. On the other hand, if a country buys more from abroad than it sells, it's similar to having expenses exceeding income.
Trade Surplus: A positive balance of trade where the value of exports exceeds the value of imports.
Trade Deficit: A negative balance of trade where the value of imports exceeds the value of exports.
Terms of Trade: The ratio at which one country can exchange its goods and services for those of another country.
AP Macroeconomics - 2.1 Circular Flow and GDP
AP Macroeconomics - 3.1 Aggregate Demand
AP Macroeconomics - 3.6 Changes in the AD-AS Model in the Short Run
AP Macroeconomics - 6.1 Balance of Payments Accounts
AP Macroeconomics - 6.3 Foreign Exchange Market
AP Macroeconomics - 6.6 Real Interest Rates and International Capital Flows
How are net exports calculated?
What happens to net exports when a currency appreciates?
What is one effect of currency appreciation on net exports?
When a currency depreciates, what happens to net exports?
What is one effect of currency depreciation on net exports?
What is the impact of a decrease in net exports on aggregate demand?
What is the impact of an increase in net exports on aggregate demand?
What is the impact of changes in the foreign exchange market on net exports?
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