Answer :
A country's net exports are equal to (b) exports minus imports. Net exports represent the difference between the value of a country's exports (goods and services sold to other countries) and its imports (goods and services purchased from other countries).
When exports exceed imports, a country has a trade surplus, resulting in positive net exports. Conversely, when imports exceed exports, a country has a trade deficit, leading to negative net exports.
Net exports are a crucial component of a country's balance of trade, which measures the economic flow of goods and services across borders. Positive net exports contribute to economic growth, as they indicate that a country is earning more revenue from selling goods and services abroad than it is spending on imports. This surplus can lead to increased employment, higher income levels, and a boost to the country's overall economic activity.
On the other hand, negative net exports, or a trade deficit, indicate that a country is spending more on imports than it is earning from exports. This situation can have implications for a country's economy, such as a decrease in domestic production, loss of jobs, and potentially an increase in the country's debt.
In summary, a country's net exports are calculated by subtracting the value of imports from the value of exports, and they play a significant role in determining the balance of trade and influencing a nation's economic performance.
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