Question
In: Economics
What are Net Exports? Would increase in foreign students coming to the U.S. on student visa...
What are Net Exports? Would increase in foreign students coming to the U.S. on student visa be considered our imports or exports and why?
Solutions
Expert Solution
What are net Exports?
Net export means total trade of the nation and the formula for net exports(X-M) where ‘X’ stands for the total value of exports. ‘M’ stands for the total value of imports. In simple words, the total spending of foreigners on domestically produced goods and services minus total spending of domestic residents on foreign goods and services.
Net Exports (NX) =X-M
Would increase in foreign students coming to the U.S. on student
visa be considered our imports or exports and why?
it considered our exports. Because Spending of foreigners on domestically produced goods and services considered as Exports. Similarly, foreign students using the education facilities of U.S. universities and they are paying for it. So it is income for the country.
Rahul Sunny answered 3 years agoRelated Solutions
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Net foreign factor income 4
Dividends 16
Transfer payments 12
Compensation of employees 273
Rents 14
Taxes on production and imports 18
Statistical discrepancy 8
Undistributed corporate profits 21
Consumption of fixed capital (depreciation) 27
Personal taxes 26
Social Security contributions 20
Corporate income taxes 19
Interest 13
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Proprietors' income 43
Government purchases 82
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