What is a Net Exporter?
A net exporter is a country that sells more to other countries than it buys from other countries. Countries are often net exporters in some industries (natural gas, for example) but net importers in others.
How Does a Net Exporter Work?
Net exports are measured by comparing the value of the goods imported over a specific time period to the value of similar goods exported during that period. The formula for net exports is:
Net Exports = Value of Exports - Value of Imports
For example, let's suppose Canada purchased $3 billion of gasoline from other countries last year, but it also sold $7 billion of gasoline to other countries last year. Using the formula above, Canada's net gasoline exports are:
Net Exports = $7 billion - $3 billion = $4 billion
Why Does a Net Exporter Matter?
When the value of goods exported is higher than the value of goods imported, the country is said to have a positive balance of trade for the period. When taken as a whole, this can be an indicator of a country's savings rate, future exchange rates, and to some degree its self-sufficiency (though economists constantly debate the idea).
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Our parents, and even grandparents, never saw rates like these. A 15-year home loan now averages 2.84%, while a 30-year loan is...
Read More →
Yes, bonds are boring. But boring is good during turbulent markets. Bonds give you some of the most...
Read More →
America is over the Nigerian prince scam -- I think -- but there are fresh scams getting invented every day, and not necessarily on the Internet or by email, where you would expect them....
Read More →
Booking travel is so easy to do, yet all too often we wind up spending more than we wanted. Thank fee-happy airlines for that -- there's no limit to what they'll charge for, from meals to...
Read More →
You've probably heard for years that it's a waste of money to buy rental car insurance. It's just another way to get gouged,...
Read More →
