AP MacroeconomicsInternational Trade & Finance
Net Exports
Net exports are the value of a country's exports minus its imports, a key component of aggregate demand.
Positive net exports (a trade surplus) add to GDP, while negative net exports (a trade deficit) subtract from it. They are influenced by exchange rates, relative incomes, and relative prices. Net exports are the 'X − M' term in GDP.
Formula / Example
Net exports = Exports − Imports.
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