Question

Suppose that tourists from Japan visit the Golden Gate Bridge in San Francisco, California. They spent a total of $10,000 on the trip, divided into the following categories:

Airfare (American Airlines): $2,000

Food (in U.S.): $2,000

Sleeping accommodations (Airbnb): $1,500

Applications for tourist visas (paid to U.S.): $750

Return flight (Korean Air): $2,500

Uber rides (in U.S.): $1,000

Food purchased in Tokyo airport: $250

Q: What is the total amount of impact on net exports (in the point of view from Japan's economy?)

Answer 1

import- buying of goods and services from another country rather than a domestic country.

export- selling of goods and services from domestic country to foreign countries.

net exports= import-export in dollars(japan economy)

imports include availed services from US= airfare(American airlines)+ food(US)+ Airbnb+ VISA Application fees+ Uber

2000+2000+1500+750+1000=$7250

exports= return flight(Korean air)+food at Tokyo airport

2500+250=$2750

net exports (in view point of japan's economy)= 7250-2750=$4500