Question

What do you mean by net export

Answer 1

Answer:

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Answer 2

In International Trade or International Economics,Net export is also referred to a Balance of Trade which is computed by taking the difference between the overall or total value of export and total or overall value of import registered by any country or economy.

Explanation:

• In an open economy,net export is an essential component of the calculation of the GDP which constitutes two aspects of international trade,the overall monetary value of the export and the overall or total monetary estimation of the import registered by the economy.
• It is mathematically computed by subtracting the overall or total foreign revenue generated by all the export activities by any country and the total capital outflow incurred by the country due to the import of all the goods and serviced within a specific time period.
• If the total or overall capital inflow caused by the export is greater than the overall capital outflow under import,then net export would be positive thereby contributing to the GDP growth of any open economy country and negative if otherwise.