Net export is one of key indicators of macroeconomic. It can be positive or negative. Determination of this size is only at first sight simple. The actually most exact calculations are possible only when accounting a set of the influencing factors.
Instruction
1. The simplest formula which captures the essence of net export is the difference between export and import. The formula so looks: * Xn = Ekh – Im. If import is higher than export, it is possible to say that the counted size has negative character if export is more than import, net export – size positive.
2. If you look at macroeconomic models, then will see that net export in them call the current balance. If it negative, it is possible to speak about deficit of the account of operations if positive, the surplus of the account of operations at the moment is available.
3. When determining net export it is important to consider the factors influencing financial flows. On the IS-LM model, the formula of calculation of this size will take the following form: * Xn = Ekh (R) – Im (Y) This formula shows that export is in negative dependence on R – percent rates, but at the same time does not depend on Y in any way – income level in the country from where the goods are taken out. In fact is GDP. The rate of percent influences export through change of an exchange rate. If it grows, also the course grows. As a result export becomes more expensive to foreign buyers, so, is steadily reduced.
4. Import in a formula on the IS-LM model is in direct dependence on level of income of the population. The nature of dependence of import on an exchange rate is same. With growth of a course national. currencies also the solvency of citizens in respect of import grows – it for them becomes cheaper, therefore, they can buy more foreign goods, than earlier.
5. Not less important when determining net export to consider also the income of the population in the countries where there are goods made in the country. In this case net export can be calculated by a formula * Xn = Xn – mpm YZdes Xn is an autonomous net export which does not depend on the income of the population of a producing country, and mpm is an indicator of extreme tendency of the population to import. It shows how the import share at reduction or growth in incomes will decrease or will increase.
6. The indicator of mpm can be learned, having applied a formula * mpm = ΔIm/ΔYЗдесь ΔIm is a change of import, ΔY – change of income on a commodity unit. If Y grows, net export decreases if Y falls, then export increases.