ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A nation’s net exports number is a straightforward calculation: The value of its total exports minus the value of its total imports equals its net exports. A positive net export number indicates a trade surplus, while a negative number means a trade deficit.

Detailed explanation-2: -If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative.

Detailed explanation-3: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus. Conversely, if the imports exceed exports, an unfavourable balance of trade, or a trade deficit, exists.

Detailed explanation-4: -If net exports are positive, exports are greater than imports, indicating that the country sells more goods and services abroad than it buys from other countries. In this case, the country is said to run a trade surplus.

Detailed explanation-5: -Net exports are a measure of a country’s total trade of goods and services. It is also known as the balance of trade. It is at after deducting the nation’s import value from the export value and calculated for a specific period.