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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?

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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 ago
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