Answer to Question #245487 in Macroeconomics for Thera

Question

Net export are positive when

Answer 1

Solution:

Net export is positive when the exports are greater than imports.

Net exports refer to the difference between the total exports and total imports. It is a measure of a country’s total trade. When the exports are greater than imports, net exports are positive and when exports are lower than imports, net exports are negative.

A country that has positive net exports enjoys a trade surplus, while negative net exports mean the country has a trade deficit. Therefore, a country’s net exports are a component of its overall balance of trade.