What Are The Net Exports Of United States?
The United States is an open economy engaged in importing and exporting goods and services. The last component of gross domestic product and an increasingly important one in recent years is net exports, the difference between exports and imports of goods and services. How do we draw the line between our gross domestic product and other country’s gross domestic products? The U.S gross domestic product represents all goods and services produced within the boundaries of the United States. Production differs from sales in the United States in two respects. First, some of our production Iowa wheat and Boeing aircrafts is bought by foreigners and shipped abroad, and these items constitute our exports. Second, some of what we consume Mexican oil and Japanese cars is produced abroad and shipped to United States, and such items are American imports. For most of the last half century, exports exceeded imports: net exports were positive. Since 1980, however, U.S imports grew rapidly and net expor
