Net Exporter

Categories: Econ, International

Countries build stuff. They sell said stuff within their country. And they sell it around the world, i.e., export it. Add up all the stuff a given country exports, and that's their, um, cleverly named "total exports." Yes, we just came up with that out of the blue. We're all PhDs here.

So then what is a net exporter other than a company that sells ways to catch fish all around the world? If you're a net exporting country, it means that you're selling more than you're buying or importing from other countries, and that's good. Other countries are giving you their currencies, which you horde. Of course. Your own currency is then relatively strong against theirs around the world, and the cycle is virtuous, meaning you get stronger as you go.

The U.S. was like that in the '50s and '60s under the power of its automobile exporting business. Then we kinda stopped being so far ahead of the rest of the world. And we're now in China's, uh...rear-view mirror.

Find other enlightening terms in Shmoop Finance Genius Bar(f)