Net Exports

Definition

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).

Related terms

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.