Net Exports (Nx)
Definition
Net Exports refers to the value of a country's exports minus the value of its imports. It represents the net flow of goods and services between a country and the rest of the world.
Analogy
Imagine you have a lemonade stand. If you sell more lemonade to your friends from other neighborhoods than you buy from them, your net exports are positive. But if you buy more lemonade from them than you sell, your net exports are negative.
Related terms
Trade Balance: The difference between a country's total exports and total imports.
Current Account: A record of all transactions involving trade in goods, services, income, and current transfers between a country and the rest of the world.
Balance of Payments: A comprehensive record of all economic transactions made by individuals, businesses, and government bodies within a country with other countries over a specific period.
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