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What are Net Exports? Would increase in foreign students coming to the U.S. on student visa...

What are Net Exports? Would increase in foreign students coming to the U.S. on student visa be considered our imports or exports and why?

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Answer #1

Solution:- Net export is the difference between total exports and total imports of a country.

Increase in foreign students coming to a country is an export as education is a service and this service is provided to the Foreigners who are citizens of other countries they pay for the educational services and for their living in US ,which is a source of income for US that they receive by providing services and goods to the foreigners.

Hence, coming of foreign students to U.S for higher education is an export for U.S.

Hope this was helpful!!

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