What Is a Net Export?
A net export is the remaining monetary value after total imports have been subtracted from total exports. It is usually used in reference to the balance of trade between nations. The statistics of legal trade between nations may not reflect certain activities that many consider important, such as the transfer of raw materials and illegal goods. Economists have debated the advantages and disadvantages of maintaining a net export in trade for centuries. The long-term consequences for imbalances in trade are not well-understood. The system of mercantilism that thrived during the 1600s and 1700s sought to achieve a net export. Governments believed that amassing gold was required to achieve wealth and prosperity—in other words, possessing money is identical to possessing wealth. Furthermore, the mercantilists assumed the global supply of wealth was fixed. It made sense, then, to ensure exports always exceeded imports. This net export would result in a steady accumulation of gold, and it was
