Topics
Net Trade
A country's net trade balance is the difference between the value of its exports and the value of its imports over a specific period, usually a year.
Aggregate Demand (AD) = Consumer Spending + Business Investment + Government Spending + Net Exports
Trade Surplus (Positive Net Trade Balance): A trade surplus adds to net exports, which in turn increases aggregate demand.
Trade Deficit (Negative Net Trade Balance): A trade deficit subtracts from net exports, leading to a reduction in aggregate demand.
See also
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2.1.4 - Balance of Payments (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
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2.2.5 Net Trade (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
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Currency Depreciation and the Trade Balance - Chain of Reasoning
Practice Exam Questions
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Components of Aggregate Demand
Study Notes
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Economic Significance of Trade Imbalances
Topic Videos
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UK Economy Update 2019: Trade & Competitiveness
Topic Videos
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Net Trade Balance and Aggregate Demand
Study Notes
