measurement of
national income is a calculation under the branch of
macroeconomics.now coming to the question,the concept of import and
export are very crucial and sensitive in the national
income.
- when net export (export-import) is in positive value,then it
represents that there is a surplus concerned with term of trade and
country is exporting more goods and services in comparison with
import of goods and services.this indicates that the economy is fundamentally strong and
can fulfill its requirements at its own.it represents the self
dependency.
- but when net export (export-import) is in negative value then
it represents that there is a deficit concerned with term of trade
which implies that the country is importing more of goods and
services that exporting the goods and services. this indicates that
the economy is not strong and it can't fulfill its basic requirements
at its own and it has to depend on some other countries for goods
and services.
thus we can
observe that import and export makes either positive or negative
impact on the representation of national
income.