Answer to Question #219478 in Microeconomics for yummie

Question

"Jason is a Japanese man who is on holiday in Thailand and buys handcrafted gifts for his girlfriend."

Explain the impact of the above transaction on Thailand's imports, exports, and net exports.

Answer 1

The transaction has no impact on imports.

Exports are increased. A foreigner is buying locally produced goods.

Net exports increase because level of exports increases while level of imports remain the same.