INTERNATIONAL TRADE

Macroeconomics

Exports are goods and services produced in the home country and sold in other countries or markets. Imports imply the opposite- goods received from other markets. The difference between the total value of imports and the total value of exports of a country is referred to as net exports. The net exports can be expressed as a positive or negative figure. Net exports is a significant variable used in calculating the gross domestic product of a country. For instance, when the exported goods’ value is higher than the value of imports for the specified period of time, the country is said to be having a positive balance of trade.

Students in Prague flocking to see the latest Hollywood movie

Net exports = Exports –Imports (Sawyer & Sprinkle, 2019). In this case, Hollywood belongs to the United States. Therefore, as more people purchase it in Prague, it would increase the value of exports from the United States. The exports are kept constant, and hence the net exports will rise with the increasing exports.

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